Is Rick Perry correct? Is Social Security a Ponzi scheme?
I pulled out the last statement that Social Security sends to each of us annually. It lists my annual contribution all the way back to the jobs I had in college. I listed all of those contributions in an Excel spreadsheet. Then I calculated the future value of each year’s contribution earning 3% compound interest.
The results were wonderful for me but not for the Social Security Administration. Based upon the results, my contributions along with interest earned, I will be withdrawing money I did not contribute ten years after my retirement.
This assumes I am alive ten years after I have retired. Given the fact that many seniors are now living into their eighties, and beyond, this is not an unrealistic projection.
We have a social problem. You see I could have worked longer than 67 but no one wants to hire senior citizens. Oh, I know, I should work at Walmart as a Greeter. Will we have to pass laws forbidding the layoff of senior citizens that can still do their job? Perhaps we will simply tell senior citizens the Social Security benefit is only for a maximum of ten years. If you live longer we will not provide you with any assistance.
Then again perhaps we could tax the very wealthy to keep the system going. I like George W. Bush’s private accounts idea.
Our national problem is that the politicians don’t like to deal with difficult problems. They want someone else to deal with the hard stuff.
Coast Contact 