Rabble Rouser Report #10

Social Security … A Benefit

The emails are coming from the Rabble Rousers. The subject is Social Security and the claim is that “They” are calling it a “Benefit” now. Apparently, the “they” is the current federal administration how can they call Social security a benefit when it is our money and we deserve it. As a matter of fact, we are getting less of our own money back than we should!

Well, the problem is that the myth of Social Security that the rabble rousers are trying to build on and ingrain in us is that it is “our personal bank account of savings”.  The fact is that it never was and never will be. The first part of Social Security is that it is a tax, pure and simple. When we work, we have a tax on our earnings …  money deducted from our pay check that goes to the government and it is no longer ours … it belongs to the government. The second part of Social Security kicks in when we retire. At that point, we receive a Social Security BENEFIT.  It is a benefit of working and being a productive citizen and the amount we get is based on the amount of our recent earnings as a measure of how productive we have been. Where does this money, this benefit, come from? It comes from the taxes paid by those who are still working or just coming into the work force. The taxes you and I paid when we were working is long gone and was used to pay the benefits for those who were retired while we worked.

But then, how could the Social Security program run out of money as many fear? This, unfortunately is a real problem because as people live longer, more of them are collecting benefits for a longer time. At the same time, there may not be enough people working and paying taxes into the system to generate enough money to pay those benefits. Thus, what you realy have is a government cash flow problem. (So what’s new?) And … calling it a Social Security benefit is not new. It always has been called that and it always will be. What is … IS!

If you want to realy understand the way Social Security works, stop being agitated be the emails from the Rabble Rousers and read Social Security. And … if you want to have your own personal retirement account, open a 401K or an IRA.

About Grandpadonplefka

Retired & a great grandpa.
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