FDR's Mistake---a Calculating Look at Socialism
Krayton Kerns
2.27.08
The world’s first social security program began in Germany in 1889. It was implemented by Chancellor Otto von Bismarck. Years later, in honor of the popular chancellor, Germany commissioned the Bismarck, the world’s largest and most powerful battleship. Launched on May 18th 1941, ironically, she sank 9 days later.
Like all socialist programs, FDR’s Social Security Act of 1935 was well intentioned but mathematically flawed. Based on a loose ponzi scheme, tax money confiscated from a huge pool of workers would be distributed to a small pool of retirees; less, of course, a small handling fee. The creator of the plan looks like a hero…for a while.
The entire Social Security system began to unravel January 1, 1937; the very day it began. Here’s why:
- Like all government programs, socialist politicians immediately used the Social Security framework to create new benefits for new groups of voters. The left never admit they use your money to buy your vote, but what began as a 2% payroll tax in 1937, ballooned to a 12.4% tax by 1993. Over time, millions of voters were trained to be dependent on the generosity of the federal government.
- In 1940 the life-expectancy for retirees was 62, now it is 77. What began as a retirement program with over 7 workers paying the benefits for every retiree now has only 3 workers per retiree. With the baby boomers retiring, by 2030 there will only be 2 workers per retiree.
- January 22, 1973 a monumental change occurred that FDR could not possibly have imagined…America began killing her babies. Since Roe v. Wade, 44,936,057 young Americans have had no chance to enter the workforce. Today that oldest baby would be 35. Throughout a 45 year working lifetime, those non-Americans would have contributed $1,227,000,000,000 in FICA taxes. That’s $1.2 trillion dollars down the sink.
President Bush offered a permanent repair to the program in 2005. But because the left uses the phrase “they-want-to-cut-your-benefits” as a political club to pummel opponents, the bill was defeated. Politically it is easier for congressman to temporarily duct-tape the system knowing they will be long gone when the ponzi scheme of socialism finally collapses. As of 1999 the long-term unfunded liability of Social Security was $19 trillion dollars.
On your ballot this November you will see politicians of the same mind set that brought us Social Security. In 1937 it was retirement programs; today it is Universal Health Care. As the socialists hype “free healthcare” remember, just like with Social Security, it will be your grandchildren who pick up the tab.
Do you respect your grandchildren’s freedom enough to vote against these incremental steps towards socialism?
