I recently ran across this propaganda pamphlet
issued by the Federal Government in 1936.
"...beginning in 1949, twelve years from now, you and your
employer will each pay 3 cents on each dollar you earn, up to
$3,000 a year. That is the most
you will ever pay
That's 3%. Today, you pay 7.65% on every
dollar you earn - BEFORE DEDUCTIONS, not after. You pay on your
gross, not your net.
BTW, it started out at 1%.
Full vesting occurred at 65 years old. Today it is 67, but
politicians are pushing hard to increase it. It is only because
senior citizens are such a large part of their constituency that
they have not done so already.
have shifted the burden to the middle aged and young earners via
the massive bailout programs. How will that money ever get
repaid? It is impossible based on any economic production model
where the GNP increases (adjusted for inflation) enough to cover
new expenses while also paying off debt. The only way is to
inflate so greatly that the value of each dollar is severely
diminished. The government is only obligated to pay in dollars
of the year borrowed. Since current taxes are based on a
percentage of current earnings, assuming that earnings rise at
the rate of inflation, the government's take is keeping up with
inflation, so they collect current value dollars and pay off old
value dollar debts. It's a win-for them, while you get screwed.
Think about it this way: Your parent's house payment in 1980
might have been $400/month - a lot of money back then. Today you
cannot even rent a 2-BR apartment for that much, but they are
still making that $400/month payment at the end of a 30-year
mortgage. In 2009 dollars, the equivalent payment is a little
more than $1,000.month. So effectively today they pay $400/month
to live in a $1,000/month home. In the reverse, that same $400
today would have been just $160.
The Keynesian economic
model - like Socialism -has never worked anywhere it has been
tried, and yet some people keep returning to it because they
believe that it just hasn't been implement by the right people.
They consider themselves to be the ones finally smart enough to
pull it off.
Hold on, we're in for a rough ride as it
proves itself wrong once again.
- Kirt Blattenberger
RF Cafe Progenitor & Webmaster