Dr. Martin Hash Podcast

The term “Social Security” has entered that realm of preconception and symbolism that defies rational logic. The very mention of the word evokes fear in some, antagonism is others, and all feel a vague sense of unease. Almost no day goes by without some mention of Social Security: either in the newspaper, on television, a brochure in the mail, or a political event. Politicians especially abuse the feelings and imagery of the term, most often misleadingly, sometimes lying, always exploitive. That is what makes it difficult for a real message to get out there, because everything has been said, and there seems to be nothing new to offer. However, here is a fact I have never heard mentioned…

We are told that the Baby-Boomers are going to need an exorbitant amount of Social Security, so the deduction has been raised, and supposedly put in a “Social Security Trust Fund.” This is blatantly misleading, almost a lie. Instead, the extra money is spent as part of the General disbursements. Treasury Bonds are then issued purporting to represent the fund but they are just words, there is no money. When the Baby-Boomers need the money, it will not be available. The U.S. budget is already in a huge deficit so new taxes will need to be imposed to raise the money to cover cashing in those bonds. What that means is that people are paying twice for the same thing: first they paid into the “trust” fund then pay again to cover cashing the bonds.

What makes it more horrendous is that Social Security is subtracted from subsistence level paychecks. In fact, Medicare is subtracted from the first dollar someone earns. There are no Social Security exemptions, no brackets, and no refunds. The poorest of the working poor pay Social Security, yet people in the highest monetary echelons of society can draw it. They use it to pay their golf fees, and tip the doorman. Also, well-paid people have a cap on how much they have to pay every year. The reason for this travesty is that Social Security is really socialized retirement but it is not truthfully presented as such. People are told the money they pay into Social Security is theirs, that the government is just holding it until they get old. Everybody is hurt by this misrepresentation. Right now we put people who use drugs in jail but not the liars who are destroying the public’s image and faith in what should be the great benefit of financial security in old age. The solution is to fully socialize Social Security so only the people who need it get it, called Means Testing, pay out of General Tax receipts, and especially stop First Dollar withholding.