Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10 5/3/83 based; site houxu.UUCP Path: utzoo!watmath!clyde!burl!ulysses!mhuxr!ihnp4!houxm!houxu!welsch From: welsch@houxu.UUCP (Larry Welsch) Newsgroups: net.politics Subject: Social Security Message-ID: <509@houxu.UUCP> Date: Sun, 20-Jan-85 09:06:21 EST Article-I.D.: houxu.509 Posted: Sun Jan 20 09:06:21 1985 Date-Received: Mon, 21-Jan-85 02:57:52 EST Organization: AT&T Bell Labs, Holmdel NJ Lines: 58 There seem to be a large number of folks on the net who do not like social security and seem to be of the opinion that they would be better off without it. Oh I hear you out there now. It sounds to me like you do not understand why social security was formed in the first place and why it is important today. The main reason social security was formed was to provide protection for all the hard working folks who worked their asses off being good citizens. They had savings, stocks, bonds and houses from their life's work and then the great depression hit. The savings, stocks and bonds were worthless and their houses were repossessed by the banks (oh yes there was this marvelous concept of demand mortgages back then, any time the bank wanted it could demand the mortgage paid in full and if you didn't have the money you lost your collateral.) Social security was a form of protection for people who worked all their lives just to discover that their life's savings was worthless, due to conditions beyond their control. Social Security is still necessary today for exactly the same reason. Think of the people who retired in 1970 say they had hundred and fifty thousand dollars to their name, which was a lot of money in 1970 Assume they owned their own home and planned on living off the interest at about 6% or $9 thousand a year. Possible in 70, forget it in 1984. Oh I grant that maybe they could get 10% a year now or 15 thousand a year, but it just wouldn't cut it. I make over 5 times my salary of 1970, but just to make 3 times or 27 thousand dollars would be significant to them. What happened, inflation! Social Security COLA's are protection against inflation. Now for some kickers. Banks are still failing, and not all banks are FDIC insured. Also to get 10% on your money you have to use non FDIC insured form of investment. Or another words people have to RISK their savings just to maintain a decent return. Finally, the single biggest expense older people have is medical. Medical expenses have gone up more than any other type, so the probability of older people being able to not touch their principle is low, since they would need to pay their medical expenses. Now, what about social security running out of money, well horse pukkey. The social security system is sound, as a matter of fact Reagan is eyeing the money in the social security trust fund to pay the cost of running government. How, you ask? Simple, buy government bonds at below the going interest rates. What social security needs is not to be disbanded, it should be strengthened. How? Simple, put the tax on one's whole income and make it progressive. Also, charge employers a progressive social security tax. For every dollar of an employees salary that is over a hundred thousand dollars, the employer must add a a matching dollar to the social security fund. Further, every time prices are raised for a given service or product, then the social security fund must get half the amount of the gross income due to the increase in price. Some other things that can be done is pass laws dictating that companies can not have mandatory retirement regulations. Raise the age that social security starts to 70 or 75. Larry Welsch houxu!welsch