Brian McLane

Media and Social Commentary

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SINCE WHEN IS SOCIAL SECURITY AN ENTITLEMENT???

July 31st, 2011 · No Comments · Social Commentary

I wonder if Captain Kirk got social security. Did the Federation deduct some credits from his salary. I’d like to see how the future handled it so maybe J.J. Abrams can channel his inner Roddenberry and let us know how it worked out.

Gene was so insightful about so many other aspects of the future. But back to the past.

For the longest time I thought I would be a rock star. That hope was buoyed when my band Mondo Boffo made it onto MTV with I Wanna Be A Marine (Google it). I didn’t become a rock star. And years later, my debt and credit caught up to me. It took me years to fix.

It’s that same kind of wishful thinking with which people are approaching the very real challenges that will face us all when reality regarding social security and medicaid/medicare sets in. I try and tell people to prepare for what’s coming (see previous post here but it’s one of those things that people just assume they’ll wind up on their feet like a cat.

An email made it way into my inbox and frankly it made a lot of sense. It was about Social Security and referring to it as “An “Entitlement.” The writer was enraged.

I am rephrasing here some of the points which need to be re-emphasized and passed along so that some politician (perhaps running for President) will be honest and fair about the matter. I know – that’s asking a lot. But the fact is that we have contributed to Social Security our entire working lives. That money was deducted out of every paycheck you ever got. Not only you, but your employer(s) were rung up too.

The writer and I are almost the same age so I will reiterate their assumptions. The amount deducted over our respective working lifetimes totaled 15% of our income before taxes. If one averaged only 30K over your working life, that’s close to $220,500. Calculating the future value of $4,500 per year (the employee and the employer’s contribution) at a simple 5% (less than what the government pays on the money that it borrows), after 49 years of working (me) you’d have $892,919.98. If you took out only 3% per year, you receive $26,787.60 per year and it would last better than 30 years, and that’s with no interest paid on that final amount on deposit!

Hmmm, sounds like a savings strategy that we already bought into.

If one purchased an an annuity and it paid 2% per year (still more than triple what the banks are paying in interest), you’d have a lifetime income of around $1,500 per month. That works.

They call Social Security and Medicare an entitlement even though most of us have been paying for it all our working lives and now when its time for us to collect, the government is running out of money. Why did the government borrow from it in the first place?

The writer of the email goes on to point out that we’re running out of money, our credit rating is about to be compromised, China says we’re already in default, and yet we’re starting new wars in Libya, handing out a trillion dollars in aid to foreign countries, and so on.

Watch this video and start spreading the word. We want our social security. Stop borrowing from it to give to the banks and other countries.

Social Security is Not An Entitlement

Social Security is Not An Entitlement

Social Security is not an entitlement #socialsecurity http://www.brianmclane.com/?p=2764

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