Sunday, August 31, 2008

Social Insecurity

Don’t misconstrue this as an endorsement of John McCain, but Barack Obama’s nomination acceptance speech was nothing more than typical political rhetoric. And of course, many people loved it. It was a cornucopia of promises that cannot or should not be kept. There is no way I can talk about everything that made me cringe or laugh out loud, but a statement about Social Security privatization really frustrated me:

How else could he [McCain] offer a health care plan that would actually tax people's benefits, or an education plan that would do nothing to help families pay for college, or a plan that would privatize Social Security and gamble your retirement?

Does Barack Obama, a candidate for the highest office in this land, even understand how the Social Security program works? Social Security is essentially nothing more than a pyramid scheme in which participation is mandatory. The government forcibly takes 12.4% (don’t try and tell me that it is only 6.2% by not factoring in the employer portion) of your income (up to a certain threshold) and gives it to those who have already retired. To the extent that inflows from workers exceed outflows to retirees, the excess funds are put into trust and invested in government securities that have low risk but yield jack $hit. The government has managed this program so incredibly poorly that the Social Security program is expected to go broke sometime around 2040. If a private company instituted a scheme like Social Security and tried to sell it to the public, the SEC would lock up every executive that had anything to do with putting the scheme in place for life.

Yet Obama, the self proclaimed candidate for “hope” and “change” has the, uh, audacity to suggest that allowing workers the freedom to invest for their retirement themselves without government coercion is “gambling”. It scares me that our next President will be Obama or McCain. Thank you sir, may I have another?


Anonymous said...

Yes, you may have another.

There are at least 4 legitimate candidates running for president, regardless of the ignorance of mainstream broadcast "news".

And don't even start with the "they aren't legitimate" because the same things can be said about McCain and Obama. The only difference is that the two parties care more about perpetuating themselves than the democratic system.

Freemarket said...

"Thank you sir, may I have another" is a line from the movie "Animal House" that I have taken to saying whenever politicans rip us off or otherwise work against freedom or waste our money. I find myself saying it a lot.

I am probably going to vote for the Libertarian candidate, Bob Barr.

Anonymous said...

All four candidates should be in every televised debate.

But the broadcast news media is not run by a Democracy and feels no apparent loyalty to that philosophy.

Freemarket said...

I agree that all (or most) candidates should be in every televised debate, but I would not blame the failure of that on the news media, that is a failure of the major parties.

The news media would include bare-assed apes in the debates if that is what the public wanted, and the Repub. and Dem. candidates would show up and participate.