Seems every time I turn around, I see the meme describing some sort of entitlement Ponzi scheme that some victims’ group or another wants to retain access to. The oft-repeated mantra goes something like, “Don’t tell me I have to give up my entitlements, I paid cash for them.”  Or.. “They have been purchased by years of payroll deductions.”  The meme, no doubt, makes absolute sense to most people who hear such arguments, after all, it seems the height of injustice when -after a lifetime of contributions to a welfare program, someone would simply discontinue the program just as it was about to pay dividends for the elderly who are dependent upon the proceeds of these fraudulent ponzi schemes! (Which, btw, are about to implode… leaving the dependants of such entitlements starving and destitute).   Surely it is the height of a contractual right – that the people who have diligently paid into these programs should be paid back!

But who did you pay cash to?...

This, of course, ignores the actual facts of the case.  The proceeds of those payroll deductions have never actually been ‘saved’ or ‘invested’ to pay the claims that would come due in the first place!  No-one who is on the hook to pay the claims back has even received any benefit from them, whatsoever!  Rather, they were used to pay for undeclared wars, to fund domestic graft (buying votes), campaign contributions, the funding of unconstitutional foreign aid – and worse yet….. to prosecute an unconstitutional Federal War on Drugs..  In many cases, it was used to pay off the people who retired before!  It has been understood by politicians for decades that our entitlement spending was/is doomed to bankruptcy, yet they still continue to promise that not only will you get back every penny you’ve paid into the system (which was designed for the mortality of Americans dying at the age of 62 on average, and is currently bankrupt), but a mandated return on top of that! (The burden of which is to be passed on to our children) who have absolutely no hope of ever being reimbursed for such lavish spending…  The beneficiaries who’ve collected the plunder in the past, having been given promises by the New Deal Ponzi schemers of some sort of magic government money machine  voted in the politicians (who were knowingly stealing your future retirement money) largely on the promises of getting  a share of the “loot!”

In order to collect money you are undeniably “owed,” you would have to get it from those who you’ve paid.. however, those people are mostly dead now – or are already collecting the same stolen money that you yourself are indeed seeking.  The only claim that you can make to the money would be what you paid in, and the people you would have to collect it from are those who are retired and in the same boat as you. Now, strictly speaking, you could get in line for the federal bankruptcy that is certainly in our future, after all, you did pay into the system, BUT… your entitlement in Bankruptcy and what you collect would be limited to only what you had paid (without the mandated returns that Congress forces the young to pay to the old, and without any price of living increases- only the amount you actually paid in).

Can you claim the wages of future workers (who did not receive any benefit from the transfer payments you “made” to the last generation)?  Or is your claim against the politicians who knowingly promised you returns upon your payroll withholding, which COULD NEVER HAVE been delivered?  Just as Bernie Madoff  perpetuated one of the biggest frauds in history, these politicians fraudulently stole y(our) money, and will be faced with the choice of either stealing the money from our children to pay ourselves back, or defaulting on the promises made.  Now, the only ‘real’ question left is… how much of our children’s money will be wasted paying for the foolish decisions of past politicians, and how will the eventual default look?   Politicians who make these promises today when it is easily understood by anybody who can perform 3rd grade math are knowingly attempting to deceive you… in the hopes that the coming entitlement default will happen after the next election.

My proposal to end this unconstitutional situation, as modest as always, would be to transition this program to the States, and transition the bonds from the fictitious “Social Security trust fund” to State control.

The methodology for accomplishing this would be simple:First, the Federal Government would set a sunset date for these programs (they could all sunset at the same time, or they could be staggered to allow the State citizens to slowly adapt to the changes).  Immediately after this, the State governments would get the opportunity to decide how they will respond.  Some states may (foolishly) decide to keep a state-run “Social Security” system just like the feds had (realizing quickly, no doubt, that they don’t have the funds for such a fiscally unsustainable program), and most will likely create something more modest.  In any event, the state-level programs would be enacted to take place at exactly the same time, to avoid any “gap” in benefits.

As the states take control of the programs, they will instantly succumb to a budget expenditure not easily sustainable through future borrowing (states have to balance the budget, as they have no reserve currency to inflate).  Some states will set up retirement and entitlement systems that work, or at least are more sustainable; and some won’t, but they will be forced to fix their mistakes before long.  Slowly, the states would find a way… and it will be determined by the current generation and what they can afford.

Over time, the states will either end their programs or make them sustainable. They will also slowly liquidate their Federal bonds from the SSN “trust fund” to pay benefits (which will force the feds to pay back to Seniors what they had borrowed to fund past spending).  Now. Surely State governments are every bit as bad as the feds, but at least the citizens have a choice- we can move!  We can effectively impact the states (the feds… not so much).


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