Privatizing Social Security

Now that the Republican candidate for this year's elections has almost been solidified, I'm going to concentrate a little more on issues that I want to see enacted than the candidates themselves. One very important issues for me, as a member of the Generation X, is the status of our nation's Social Security system. This issue should be very pressing for our generation because fifty years down the road, we'll be most affected by it. To address this issue, I'm going to quote a speech that I wrote back in high school. It's interesting that the views expressed in it (as well as most of the data sets) are just as valid today as they were five years ago. Recently, President Bush has passed many of the revisions that go into personal accounts in his new budget. With enough popular support, the left-controlled Congress will not be able to stop such an obviously smart move for our nation from occurring. Either way, this speech will show you that the current system MUST change to maintain financial security of our nation's youth.

Do you think that in fifty years, when you are old, tired, and ready for retirement, that you will receive your Social Security? Well, according to a survey conducted by Third Millennium Survey, most young people think it's more likely they're going to see a UFO than ever get their Social Security. So, do you believe in UFO’s? Because the current Social Security system is in trouble and reforms must be made, I firmly support the proposition of privatizing Social Security. Now, I will hope to gain your support as I talk to you about why the current Social Security system is in trouble, what privatizing Social Security does, and how this new system can help you!

First, I will describe to you the flaws in our current system. Today’s Social Security system operates on a “pay-as-you-go” basis. The money which the government collects from you in Social Security tax is not held for you in a special account. It is immediately given out to somebody else to pay their retirement benefits. This system worked brilliantly 55 years ago when, according to the 2004 Report of the Social Security Trustees (47), “there were 16 workers to support every one beneficiary of Social Security.” At that time, the workers were contributing a surplus of money to easily meet the needs of the retirees. Today, longer life spans and lower birth rates have changed this figure dramatically. Now, the 2004 Report of the Social Security Trustees (47) says that “there are only 3.3 workers supporting every Social Security beneficiary, and by the time our youngest workers turn 65, there will be only 2 workers supporting each beneficiary.” These statistics uncover a major flaw in the system. When fewer workers are contributing to the funds of more retirees, the retirees cannot receive the same amount of benefits. The government has promised current workers time and again not only that their benefits will stay constant, but also that their benefits will increase as wages increase in our nation. In fact, according to the government document Strengthening Social Security for the 21^st Century (2), “today’s 20-year old is promised benefits that are 40% higher, in real terms, than are paid to seniors who retire this year.” With less money flowing into the system, how can these promises be met? The only answer will be for government to take out countless loans from other countries and increase the already substantial deficit. Is this the correct answer for the future of Socials Security? Shouldn’t we do something to change this outdated system and save the benefits that have helped Americans retire for over 70 years?

Fortunately, our current President has finally stepped into the ring to tackle this problem that has faced our country for years. He has developed a plan called “Personal Retirement Accounts” which will in essence privatize Social Security, putting the funds back into the hands of the contributor. This new idea will allow workers to reroute some of their money from their Social Security Tax into untaxed personal accounts in the form of mutual funds in the stock market. Contributors would pick from a select list of conservative funds to grow a retirement account just for them. The compounding interest of the account would create an adequate retirement fund for the investor. President Bush estimates that if the program is enacted, young workers like you and me will eventually put up to four percent of their income into such an account guaranteeing a safe future for any program participant.

Admittedly, there are problems with this system. My opposition will point out that the funds that contributors keep their money in can increase and decrease with the stock market. Although this statement is a very true risk associated with personal accounts, it is fortunately a very minor one. Long term investments such as would be provided by personal accounts have always been characterized by investors as extremely safe. According to stockmarketinvestinginfo.com, “It is generally accepted, that the average long term return from investing in stocks is 10-12%.” In fact, calculated each decade, the stock market has only seen one loss in the last century; the 1930’s, decade of the Great Depression. Even during that decade, the stock market decreased only 0.03%, a very nominal amount. These statistics deem any fears of losing money in the stock market completely unreasonable. In addition, my opposition may try to persuade older Americans that privatizing Social Security will cause them to gain less Social Security benefits. This statement is an outright lie as President Bush has said in speeches all across the country, quote “If you're relying upon Social Security today, nothing will change.” He has assured the elderly that they will get their Social Security check.

Privatizing Social Security is no doubt a step in the right direction for the safety of retirees in our nation. It will in one swoop allow citizens to control the money that they will use for retirement, help the government decrease the deficit by lowering the government’s debt towards citizens, and provide a safe, reliable form of Social Security for all American citizens. It will replace the outdated Social Security system of the past and guarantee retirement accounts for people, young and old, across the United States. Do I think that in fifty years, when I am old, tired, and ready for retirement, that I will receive my Social Security? With the new system of privatized Social Security accounts enacted, yes, I do!

Why John McCain should (will) win the election

First, I want to say that I do not by any means think that John McCain is a perfect president for our nation. Nor do I want to make some worn out remarks about how great of a guy McCain is and how he can change history. I just want to point out why, of the candidates available, McCain is the best choice at this time to lead the United States.

Next, I'm going to address another candidate that I'm sure 99% of bloggers (who might read this post) my age humbly support, Ron Paul. Dr. Ron Paul is an excellent choice to lead our nation, but we all know that he WILL NOT GET NOMINATED. There comes a point when you must choose from the strong and abandon the weak in order to further your interests. Ron Paul may be the most incredible person in the world, but his views (which are very different from mainstream politics) are just too extreme to be accepted by enough American citizens (particularly the bulk of the vote, 30 and up...) There will come a time when our generation will be the majority of voters in the nation and maybe we'll call for a swift and poignant change in policy, but now is not the time. I really respect the huge support that Generation X is giving to Ron Paul in such a new and exciting news form, through bloggers, through YouTube, through Facebook and MySpace, through the INTERNET, a bold place dominated by the under 30 "youth of America." I hope that this type of support creates a more educated and politically active youth in our nation that will be able to see and react to the needs of our nation in the form of educated law-making. But for now, nothing can save a candidate from such lack of support from the mainstream voters...

Now, on to the meat of this posting...why McCain should (will) win the republican nomination. The most deserving evidence that I can possibly show is this (courtesy of pollingreport.com):

John McCain is the only candidate who stands any chance at beating a Democratic candidate (I didn't show the others to save space, but Romney loses to Obama 27-57 and to Hillary 39-50, and Giuliani loses to Obama 34-56 and to Hillary 41-51). I know some people might argue the validity of these polls, but truth be told...polls don't usually lie too much in elections. You might also say "oh, it's just 'cause of McCain's recent boost in the polls that he's getting such good results." Nope! McCain's been beating out Democratic candidates since early '06, (with one or two minor exceptions here and there...).

The other reason is this (courtesy of realclearpolitics.com):

John McCain has been Comeback Kid. Everybody likes the Comeback Kid. He has broken into a skyrocket in polls within the last month that has left the competition dangling behind. John McCain just happened to get the most incredible boost possible in his following during the most critical time for his campaign. This boost will propel him in Florida and with a win there...it will be all over on Super Tuesday...

Now, we can stop talking about which Republican is best, and start talking about why we don't want one of the front-running Democrats in office. And also, what we want McCain to do for us if he IS elected to office.

First, let's address the former: why we DON'T want to see Hillary or Obama in office. I believe that there are a lot of good ideas that come from the Democratic party, but I would venture to say that more than half of them are so idealistic that they could never work in the real world. Let's look at one that's plaguing our nation right now; social security. The idea for a social security system was a great one when it was passed by Franklin Roosevelt in 1935. Since then, it has turned into an outdated system that sucks away tax dollars from American citizens while returning inadequate benefits. By the year 2020, the costs of the Social Security system will far outweigh the income, creating a spiral of debt that will have to be increasingly subsidized by the government. This WILL NOT WORK! Modern technology has made it easier than ever for individuals to invest in their future on their own with far more profits than would be gained through social security. No matter your income level, slow-growth investments in the stock market will ALWAYS give you a better return than that you would collect from Social Security. Mandatory investment into the stock market to replace the old Social Security system would help create a financially stable retirement fund for every person in the U.S. period.

How 'bout one more very controversial issue: the war in Iraq. Pulling out of Iraq WILL NOT stop war. The war began the day terrorists decided to fly a plane into an American building on 9/11. Al Quaeda are not going to say "OK, we're done fighting with you U.S." just because "we don't want to fight anymore." The tensions that were created when we invaded Iraq are permanent and cannot be mended by ignoring the problem. Keeping troops in Iraq (and maybe even sending a few more) with an undefined withdrawal period will allow the military to do its job much more efficiently. What would happen if all of the sudden the U.S. said, we're going to withdrawal on a hypothetical date, March 7, 2008. Throughout that period troop levels would be decreasing and Al Quaeda (who aren't stupid people) would see this as a perfect time to make larger attacks. Many soldiers would suffer from such a haphazard policy. The only way to get out of Iraq is to let Generals do their jobs: increase troops when necessary, raid known terrorist establishments when necessary, and when the time comes; to slowly take troops away without the other side even knowing it. In this way, we will be able to build Iraq up to a self-sustaining state and eliminate one country from being a stronghold for terrorism.

Now, I'm going to address the second concern of mine: what John McCain would do if he was elected to office. I think that this part can be influenced, in a way, by people who post their opinions on the Internet. Politics is listening to the people and when the people speak with a loud enough voice, the sound will echo across the political arena. Blogging is a way to not only post your support for a candidate, but to also drive the candidates in a new direction. Show what views you have. Put them up front in of the face of a leading candidate and say, "this is what you need to do better to get my vote." One concern of mine that John McCain happens to currently support but in my opinion, not strongly enough is alternative energy. Energy is an issue that can destroy our country within only a few years and if it is not addressed very quickly, will do just that. Oil can NOT continue to be the main energy source for our nation. Through changes in energy policy, the U.S. can do a few things: boost its own economy through high-tech infrastructure, remove its dependence on the quarrelsome Middle East, help remove environmental strain on our slowly failing planet, and give rise to new technologies that can help modernize other markets. All of these things would be a great advantage to the United States at a time when recession is slowly peaking in to the stock market (not permanently, it can definitely turn around with the help of Bernanke). Nuclear energy is the future...currently fission and when it is developed fusion, will be the answers to all of our energy problems. This is the way the environment produces energy (in the sun) and Emerson has taught us that "when nature has work to be done, she creates a genius to do it." Nature has created the most genius invention in the universe to create energy and to recreate that genius would open up endless possiblities for the people of our world. Nuclear energy does not produce any waste save the radioactive substances that decay with time. Fusion can create radioactive substances that decay in less than a hundred years, allowing for people to create a prolonged containment method to let the materials break down. I hope that energy quickly moves to the forefront of political debates during this 2008 election.

Now, I'm going to close. I may not have convinced you that John McCain will win this 2008 election, but I hope that you may have been opened up to some new views by reading this. If nothing else, I hope that you might be encouraged to build up some political zeal and start pushing for the issues that you really think do matter. In this way America can be restored to a true democracy with the voice of the people commanding the government in a way that could never before happen in the past. John McCain may or may not win the Republican nomination, but I hope that whatever candidate wins in '08 will begin to see to the views of the people (right here on the Internet), and make changes accordingly...