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Social Insecurity By Justin Darr (10/13/04)

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Oh, what a difference 25 years can make. Back in 1977, liberal Baby Boomers were quite content to sit back and allow President Jimmy Carter to slash Social Security benefits for teachers or anyone else with the misfortune of earning a government backed pension. Back then, they were young, idealistic, maybe a bit naove, and retirement was in no way on their mind. Since it did not directly effect them, it was just fine if retired school teachers had to eat Alpo.

But now the leftist Baby Boomers are older, more mature, and retirement is just a few years away. So, no way, no how is anyone going to touch their Social Security benefits. And what if their children and grand children have to work until they are 90 to earn a fraction of the benefits they will receive? One again, since it does not directly effect them, John Kerry and many liberal Baby Boomers do not care.

According to the Social Security Administration, by 2018, Social Security will begin to experience negative cash flow, where the cost of benefits paid will exceed the tax income to fund it, and in 2042 the Trust Fund will be completely exhausted. In other words, if you are currently 35 years old, you can expect to have your retirement benefits cut by 27% by age 73 with continued cuts every year thereafter.

If you are 25, the prognosis is even worse. You will not just have to deal with the 27% benefit cut, but the Social Security Administration predicts you will see your payroll taxes doubled just to maintain the program at these lower benefit rates. On the plus side, when you consider the minimum retirement age will increase significantly as part of these benefit cut backs, you will probably be so old and gray by the time you actually get to retire that you will not really care anymore. Kind of takes the shine out of your golden years, does it not?

In light of this looming crisis, it seems rather obvious that our elected officials would be making Social Security reform one of their top priorities. Or so you would think. The reality is that only President George Bush has proposed any real change that might give future citizens a chance for a retirement with dignity. John Kerry, on the other hand, has proposed nothing but maintaining the status quo and countering Bushs solid ideas with fear mongering.

The Bush program is as pragmatic as it is simple and fair. Rather than forcing all workers to pay into a system where they have no control, Bush proposes allowing workers, on a voluntary basis, to elect to have a portion of their Social Security withholding tax placed into a selection of private investments. Considering these investments would be long term by nature, and the fact that only the most conservative, reliable, investments would be available, participants in this program would earn far more for their retirement than those who elect to stay under the old system. Everyone would win. Current Social Security recipients would benefit from the increased revenues drawn from the return on these investments, and future retirees would lay a foundation for themselves to maintain their standard of living throughout their lives. Not to mention, the boost to the economy created by the billions of dollars this program would transfer into the private sector rather than the government.

John Kerry, however, would have you believe that Bush plans on forcing everybody in the country into the plan, right now, and then running out to Vegas to bet Americas retirement future at the crap tables. The most important points of the Bush Social Security plan are; first, it is completely voluntary, nobody will have to participate in it unless they choose. And, second, it will not effect, in any way, anyone even remotely close to retirement age today. The benefits you expect to receive, will be the benefits you get. This plan does nothing but offer a ray of hope to those who come after you.

John Kerrys Social Security plans of growing the economy, restoring fiscal responsibility, and creating a bipartisan process for reform sound good, but they are completely lacking in substance. What does John Kerry plan to do other than play on the narcissistic tendencies of liberal Baby Boomers in order to pander his way into office? Where George Bush is actually trying to live up to his responsibilities today, but his posterity, John Kerry is placing his own political ambitions above your future quality of life.

Justin Darr
justindarr@juno.com