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December 6, 2013

(Article) The Liberal Fight to EXPAND Social Security


Since the founding of Common Sense Capitalism, my top priority has been the reform of Social Security.  The federal government's forceful confiscation of 12.4% (10.4% from 2010-12)  of your income in the name of your long term financial future is to date the most intrusive form of the nanny state (worse than Obamacare).  

I have not been calling for an end to Social Security, but simply, the right for an individual to opt out of the program and fund their retirement independent of the federal government.  In light of the fact that half of generation Y believes that Social Security won't exist when they retire, you'd think the need for reform would reach the attention of our Congressional leaders.  

And it has....

Iowa Senator Tom Harkin has presented a bill, not to create a voluntary component to Social Security, but to EXPAND the mandatory one!!  The press release was wrought with entitlement talk.  Senator Harkin invokes the "American Dream" and insinuates that Social Security should be a primary source of income for Americans.

This change will boost benefits for all Social Security beneficiaries by approximately $70 per month, but is targeted to help those in the low and middle of the income distribution, for whom Social Security has become an ever greater share of their retirement income.

So, we are going to solve the dependence problem that Social Security has created by making people more dependent upon the program?  

The Plum Line also points out that Elizabeth Warren favors this plan and blasts chained CPI as a "way to cut benefits."  I find it ironic that chained CPI is so negative in the eyes of Senator Warren, UNLESS it is being used to defend the current Federal Reserve policy (all of the Fed's mention of low inflation comes from chained CPI).

Finally, if you think the Social Security model is a good plan and should be expanded, you need to read the CBO's report on Social Security.