Monday, December 19, 2011

Fixing America

America is in a financial bind. I know how to get us out of it.

U.S.Savings Bonds should be given to everybody that has paid into the Social Security System to replace all of the money we put into it in premium payments. We can't give the money back directly but we can do it long term in the form of bonds. The bonds would be negotiable instruments with definite term of maturity. These bonds would have the same interest rate as the T-Bill rate on the day of issue, thus creating a ready market for them. People would be able to opt out from the social security system, over the age of 55, in favor of getting the bonds. Under 55 it would be mandatory.
Purchase of the bonds would be mandatory for 30 years after the start of the program from payrolls as a substitute for being in Social Security. This will continue to fund the system for those who opt to stay in the Social Security system.
This has several benefits.
First there would be a government backed security you can place in your own retirement account.
Second you will have a tangible asset that you can use as a basis of credit.
Third you would have a salable asset to use to back your purchase of a home or any other type of real investment you might want to pursue.
Fourth it would eliminate the open ended obligation that is now on the back of the taxpaying public citizen.
Fifth it will wean Americans off of the government dependency merry go round.
Sixth it will restore American solvency and be a bigger stimulus than anything you ever saw.
Seventh it will give you something to pass on to your children. Thus building family cohesion.

Social Security has been like a vampire sucking blood out of this economy for 70 years. It's time to give our blood back.

Edits and additions:

I have seemingly left out provisions for disability coverages. This should be addressed in a separate fund. I am quite certain we can afford disability payments much easier than we can afford open ended retirement accounts, and death panels in state run medical coverage, intended to shorten the pay out for medical and retirement benefits. (the back door deficit reduction effort of liberal fascism)
The 2010 payout in social security disability insurance was $127 billion. Much less than the $2.336 trillion for retirement benefits that is expected to grow nearly exponentialy. This can be done from the general fund.

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Boxer owned for Racism

An inconvenient debt.