Rewiring America’s Political Third Rails – Part 1

What’s the dirtiest word in American politics?

To some it’s liberal or progressive or democrat. Others believe it’s conservative or republican or tea-party.

My choice: entitlement.

The goal of protecting the aged from being destitute, of providing health coverage to the elderly and the poor, or helping a person who has lost their job survive until they can find another certainly appear noble.

Unfortunately, they usually become political weapons wielded by those in power to retain — and even accrue more — power. Citizens come to expect them, use them as the basis of planning their own futures and, eventually, it become that dirtiest of words…an entitlement.

Look at Social Security which, if we want to be honest about it, is the greatest Ponzi scheme ever perpetrated. Spawned during the Great Depression of the 1930s, it was constantly and consistently referred to as a “safety net” intended for “the poorest among us.” Noble intention.

It was enacted when the life expectancy of the average American was less than 65 so, obviously, most people would not live long enough to collect a cent. Today the average person expects to live well into their 70s; in fact, the life expectancy is getting close to 80.

At the same time the demographics of the American population is changing rapidly. The baby boomers of the post World War II era are nearing Social Security eligibility while the size of the average family has declined dramatically. That means there are fewer and fewer workers contributing the money necessary to meet the “entitlement” of more and more seniors. Unsustainable.

When I began my post-college working life the FICA rate was just two percent of the first $5,000 in earnings — $100.00 a year. Of course, my salary, working in mid-town Manhattan, was just $4,380…and there was no health insurance, 401k, IRA or pension.

You hear the argument all the time, “I’ve paid into the fund and I’m entitled” — that word again — “to those payments.” What nonsense!

Fifty years after starting my working life, in my seventh year of receiving monthly Social Security payments, I’ve already gotten several times what I paid into it and, based on my family history (an aunt lived to 96, another is 92, an uncle is 94 and mom made it to 87), I’ll be getting money earned by my grandchildren aged 16, 13 and 10. Dastardly!

Politicians — people whose career choice makes it imperative to win an election and re-election and re-election — lack the self-interest to fix the problem. It’s called the third rail of politics…touch it and you’re dead.

Well, conservatives, blue-dog dems, tea-party members it’s time to step up, to put our money where our mouths are, to start the process of stopping and reversing the unsustainable programs which are pushing America to the brink of insolvency.

So, here’s one septuagenarians plan.

1. Means test Social Security eligibility so that while it won’t only be for “the poorest among us” it will not go to those who were smart enough and industrious enough and successful enough not to need it for survival in their later years.

2. Because a contract is a contract, all those currently receiving Social Security will continue to receive the benefits they’ve been told for 70 years were there for them. Don’t worry, it’s still called “life expectancy” and eventually we’ll all pass on.

3. All those over 55 years of age should be given the choice of continuing with the present system or freezing their Social Security benefits at the current level and investing their 6.2 percent contribution privately in an IRA or 401k plan.

4. Those between the ages of 25 and 55 will have their Social Security benefits frozen (without a choice) and will switch to a privately held retirement fund using a minimum of the 6.2 percent already withheld from their paychecks.

5. Everyone else — those under 25 and all future wage earners — will be responsibly for their own retirements with contributions not less than the 6.2 percent figure they would have paid into Social Security (assuming the rate wasn’t increased by the ruling political class in the future).

What’s the benefit of a plan like this?

First, it is taken out of the hands of the politicians who use the power vested in them for their own self-preservation — it’s called vote buying.

Second, eventually it will remove the government from the process of securing the American citizen’s future and well-being…returning them where they rightfully ought to be, in the hands of the individual.

Third, it removes the burden from our children and their children and their children. That’s the righteous thing to do!

Fourth, it lessens the tax burden on business so they can invest in their companies, hire more people and be more competitive in the world markets.

Fifth, and this is one of the hallmarks of American society which has been tattered and torn since the progressive movement began, it restores the obligation of the family, the religious institutions and our local communities to care for our own, to assure the well-being of our fellow citizens and to do so without ceding more and more power to the government.

We did not reach this point of looking to government for our sustenance overnight and we can not wean ourselves from the teat of government in days or months. It will take years but it must be done.

In a future post, we’ll show how this same approach can be used to free the individual citizen from government control in the areas of health care and even unemployment.

It can be done…with your support and with your demand that those who want your vote stop trying to buy it.

Let’s Do It…Let’s Spread The Wealth!

Candidate Obama told Joe the Plumber, that spreading the wealth helped everyone.

It’s obvious that President Obama and his minions are working to that end. We need to help them!

Here’s the plan: during the coming census we gather statistics on everyone’s net worth — everything…stock portfolios, assets over liabilities, equity in houses, jewelry, cash on hand — and then divide it by the number of adults citizens.

The Federal Reserve estimated that as of September 30, 2008, the net worth of U.S. households was $56.5 trillion. For those who like to see the zeroes that’s $56,500,000,000,000.

There are an estimated 200 million adults in the country. That works out to $282,500 per adult citizen — $565,000 per husband and wife.

Assuming a 40 percent tax rate each adult would pay the government $113,000, leaving each adult citizen with $169,000 ($338,000 per couple). The government would collect — in one year — $22.6 trillion…enough to pay off the entire national debt and end (at least temporarily) social security, medicare, medicaid, all welfare programs and unemployment insurance.

Oprah helped give us this president so it’s only fitting we get approximately $1,000 each from her estimated $2.3 billion net worth. And, I’m willing to accept thousands more from Bill Gate’s $50 billion and Warren Buffet’s $40 billion. I’m especially grateful to get about $6,000 from George Soros’ $13 billion. And, I really appreciate some of the President’s Nobel Peace Prize money.

Think of the benefits to this plan — besides saving our children and grandchildren from unspeakable debt. People could pay off their homes, buy new cars and electronics, fund retirement accounts, pay their doctors and hospital bills, set aside money for their children for college.

The home builders would boom, auto factories would hum, stores would do record business, restaurants would be full. Of course, in the short term wages would soar because, after all, who really needs to work?

For one brief, fleeting moment we’d all be equal. The great and the peon, the producer and the consumer, the frugal and the wastrel. Take a picture so you can remember that moment because within days the picture would begin to shift.

Oprah would still be making more money than anyone else on television, Buffet’s stock’s would soar, Gates would be selling software faster than Window7 can boot up and Soros would go long on the dollar and recoup his contribution to the cause of equality.

Millions would waste their money, fail to provide for their futures, be hoodwinked and soon the inequality would return. It would happen because all men and women are created equal in the eyes of their God and the law but not in their abilities. It would happen because the Constitution guarantees equal rights but not equal results.

Millions more would start new businesses, invest in new ideas and in successful companies. Eventually — actually much quicker than most would imagine — wages would return to more normal levels as those who had gone through their windfall found themselves needing to work.

Soon their would be billionaires and multi-multi-billionaires again. And poor people once again looking to the government for help.

But, for one brief, shining, moment we’d have all been equal.

Rich Folks! Save America! Stop Working!

For once why don’t you just agree with the liberals: you’ve got enough.

Besides, they’re going to raise your Federal taxes to at least 39 percent. Many of you live in high tax states like New York and California. That will put your total tax payments right up there near 50 percent.

Why would you bust your butts to keep 50 cents out of every dollar you earn? Don’t do it. Just retire…take a year or two off. Stop earning. Stop paying exorbitant taxes. Isn’t it enough that the top one percent already pay 40 percent of all taxes?

While you’re sitting on the beach, cruising on your yacht,  reading the great books…whatever, the liberals will be forced to recognize that they can’t push their agenda on the backs of the top one or two percent of Americans.

You won’t be hurting but you’ll help the rest of us restore American principles that hard work, risk-taking and success are not the enemy but the savior of the country.

Imagine the good you’ll be doing if you stop producing jobs, stop enabling the liberals and bring about a new awakening that America was made great by capitalism…not empathy.

Once you stop having an income to be taxed we might be able to return to a system where everyone pays for the privelege of living in this wonderful country, enjoying the freedoms millions of men and women have died to protect.

Rich people…do your patriotic duty! Drop out, lie back, enjoy your success. Save America.

Liberal-Progressive Trickle-Down Economics

The liberal-progressives love to decry trickle down economics as helping the rich while the poor and middle class fight over the scraps.

What they won’t admit is that they have their own form of trickle down economics.

Under Obama and the liberal-progressives, the federal government collects as much of the people’s money as they possibly can and then passes it down to the states or local governments.

It’s about power and control…and buying votes. Simple as that.

The feds collect $1. We’ll be kind and say the IRS only takes two cents for the cost of administration, collection and prosecution.

Congress, which we know has no waste and costs the people nothing to staff and run, takes out oh, let’s say eight cents.

The remaining 90 cents goes to one of the bloated bureaucracies, like the department of transportation.

Their expenses run another dime so 80 cents is sent to a state. Like California, for example, that shining example of good fiscal management and government. Another dime for administrative costs.

The state, in turn, decides the money out to be spent in Los Angeles County which, of course, has it’s own bureaucracy to maintain.

The net result is that 50% – 60% of the original dollar taken from the taxpayer actually gets spent to accomplish something…building a new road, repaving an old one or filling a pothole.

How much better would it have been to hold the federal government to the constraints of their very limited enumerated powers and let the lowest level of government collect and dispense the money?

The state should collect the money for state roads from state residents. The people of the state decide when their state legislators are spending too much or too little.

The county should collect the money for county roads from county residents who will be affected by them. Again, they can decide when their county officials are doing a good job or a poor job.

Imagine how much further that $1 in taxes would go if it didn’t have to pass through five, six, seven levels of government all taking their cut.

Imagine how much more responsive each level of government would be to their immediate constituents.

The problem, of course, is that politicians – Dems or GOP – would lose their power to influence who got favored with their largess.

Only we taxpayers would benefit and, truthfully, that’s generally not what politicians are concerned about.