October 26, 2020

Gen Z Conservative

The thoughts of a young conservative on political issues relevant to all ages

america should abolish social security

America should Abolish Social Security

Why America Should Abolish Social Security

Note: This is a guest article written by an anonymous reader who thought a follow up to my article about why Social Security is unsustainable was needed. He thought that America should abolish Social Security, and I agree. The national debt is skyrocketing, so now is the time to not only demand no new entitlements but also start to cut ineffective and costly programs like Social Security. I have added a few sentences, but it is otherwise his original article. Enjoy! -Gen Z Conservative

Social Security isn’t working. Politicians should take this four-step plan to scrap it.

I’ll admit, it’s not popular to say that America should abolish Social Security. Scraping the all popular Social Security Administration sounds like an unpopular political move to most of the American people.

But, we also have to admit that the system no longer works as was intended. The concept of the program actually is based on the socialist ideology of wealth redistribution, since the payroll tax is used to benefit the retirees already collecting their benefits.

Since 1935, when FDR signed into law the Social Security Act, the system has undergone so many changes that even the Social Security number is now our personal financial identification number.

This is a dangerous move that has been bestowed upon us, because now if anyone got a hold of that number that we didn’t intend for them to have, we would find our bank accounts garnished and be plunged into financial chaos. This is one of the main issues in regards to scrapping the program altogether.

We do not need to depend on the government for retirement security, as it is against the intentions of the Founding Fathers for what government was meant to be. The government was not meant to be your solution to the coming retirement crisis; the American people need to take responsibility to save for retirement, and there are many options for that, such as having a 401k, IRA, Roth IRA, etc. You just need to learn the importance of saving and investing in the different asset classes sooner rather than later, as Ray Dalio discusses in Principles.

With that, we’ll look at the four-step plan that our Washington, D.C. lawmakers should consider implementing. It is a safe and effective plan that does not damage anyone’s current trust fund or benefits.

Step 1: Stop giving social security numbers to newborn children in America.

The system will always be egged on by the constant giving of American newborns a social security number upon birth. Because the Social Security number is now considered your personal identification number, one would think of it as unwise to not have it. It is used for obtaining credit, opening a bank account, as well as successfully getting a job. It is also used for gaining private insurance, buying a home, buying a car, as well as many other things.

Because of this phenomenon, incentives would have to be implemented to help Americans who will not obtain a number after the start of the SSA scrapping. Employers will need to realize this after about 14 years after the period has begun since, by this time, a few young Americans will be looking for work.

Step 2: Eliminate the payroll tax.

U.S. News opinion contributor Dean Clancy published in 2015 that in order to reform Social Security, the payroll tax would have to be eliminated. In his column, he writes that the “payroll tax receipts are insufficient to pay promised benefits.”

For decades, the trustees of the Social Security program have annually warned that the trust fund is out of balance and, absent reforms, will go broke.” He also writes later that “either everyone’s monthly Social Security check will have to be reduced by 25 percent, or payroll receipts will have to be increased by 25 percent, or millions of retirees will have to be dropped from the rolls. Realistically, politicians will balk.”

The Social Security payroll tax must be eliminated. It’s what eggs on the system. Over the years as inflation has continued to rise, the payroll tax has increased. The current tax rate is 15.30% (7.65% paid by the employee and 7.65% paid by the employer). D.C. politicians have over the years squabbled over how to handle the system, as it is continually becoming irrelevant.

Democrats have longed to keep increasing the payroll tax in order to meet benefit demands. (What else is new? Raising taxes is a part of their platform and they absolutely hate Trump’s tax cuts). Republicans disagree, and would rather reduce benefits, which is highly unpopular. All in all, both parties do not take a stance of altogether getting rid of Social Security.

3. Pay benefits to those who contributed before the payroll tax elimination.

The obligation has to be fulfilled for those who paid into their Social Security trust funds. Because current funds collected by the payroll tax goes to paying benefits for those already retired, there would be no money for those already contributing. Although better than Social Security and other entitlement programs one day eating up 100% of the federal budget, a portion of the federal budget will still have to be dedicated to fulfilling Social Security needs.

One aspect of Social Security that gets overlooked is that it, along with Medicare and Medicaid, contributes to the ever-rising national debt. The cost is so overwhelming to run these programs that the federal government has to borrow money and add to the national debt just to keep them running.

4. Shut down the Social Security Administration.

After the last benefit check has gone out, the nightmarish socialist-designed program can finally be shut down and only remain in the history books.

A private retirement plan is better than a government-run trust fund administration that is not guaranteed to make life better. The money that you use to pay the payroll tax can easily be used to contribute to an IRA or 401k. Maybe that money can even be used to invest in the stock market (as risky as that sounds) and you will possibly get a better rate of return to use in retirement, far more so than what a Social Security check would provide. Americans must take charge of their retirement instead of relying on the government. It’s time for America to abolish Social Security.

By: A Concerned Patriot

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