Yeah, I'm scared. But not as much as I am mad.
Social Security is a classic Ponzi scheme. Payouts made today are financed entirely by money taken by other workers today. The scheme is only viable as long as there are enough current workers to pay out to former workers. For those who are under 50, it does have a negative rate of return. By the time I reach retirement age, I fully expect Social Security to be transformed into just another means-tested welfare program. (They are already talking about this today) From the moment I figured this out (as a teenager) I fully expected to never be able to collect a dime from it. As far as I am concerned, it's just another 15% "poor tax" taken from my income that I'll never see again.
Yes, it's true; I too lost money on my retirement investments. (Only for a short while; I made it all back too) But guess what? Even at the bottom, there was still money in those accounts, and it's mine. Exactly how much money is there in your Social Security "lock box"? Zero! It's entirely dependent upon money taken from someone who is working today. And as the ratio of people working versus those collecting continues to diminish, either the benefits will have to decline, or the taxes rise. As the taxes rise, they will begin to diminish as well as more and more jobs disappear from the economy.
I'll take 50% of something over 100% of nothing any day.
And unlike with my investment accounts, Congress cannot simply decide one day to change the rules and take that money away like they can (and will) with Social Security. There is no legal promise behind Social Security. Congress can change it at will.
And then we have the fraud perpetrated by Congress and the President known as the "payroll tax cut", which really isn't a tax cut at all, but is actually stealing from Social Security. It's a "payday loan" that I didn't even ask for, and will have to pay back later with interest. Anyone who supports that insanity cannot be taken seriously in regards to "protecting" or "saving" social security.
My biggest fear is the "redistribution" you're a fan off. So when Social Security goes bust, which it will, I fully expect the politicians to come after my private savings. (They've been scheming to do that for over 20 years now) That will be an ugly day.
As for my neighborhood, I am very active in it, thank you. I put a lot of money and effort into my community.
