Subject: Social Security is Charity for the Affluent
Another point on these thoughts about the Social Security's system of wealth transfer system and a fully funded system's creation of wealth. It may have done little economic harm to take 2% of current income (current income that could have been used by current workers to establishing the walnut orchard, i.e., capital investment) and distribute it for current consumption of the needy elderly. That's what Social Security originally did; it operated to protect the elderly from poverty-ridden old age.
At only 2% of payroll, the impact on wealth creation may have been minimal. It was the same decision each of us makes when confronted with a poor person on a street corner asking for money. I might give that person two dollars, but it is not likely that I would give him $15 even once, let alone on a weekly basis. My own family is more in need of the money.
But today, at 15.3% of payroll (including Medicare taxes), the impact on wealth creation is much more severe and ultimately devastating. Even if one does not agree that current rates are detrimental, it must be agreed that at some higher percentage of payroll, the impact of these taxes will be devastating for our economy and our people.
For current workers, Social Security is charity, pure and simple. Charity is something given without real expectation of a tangible, equivalent return, and today's workers can have no real expectation of tangible, equivalent return. It is one thing to be charitable to the needy; it is quite another to be charitable to those who are better off than you are. And even then, charity should begin at home.
