I know lots of people love social security. I know lots of people consider social security a successful government program. I disagree.
A comment left in my previous post about the 2017 changes coming to social security, inspired me to list out what I don’t like about the program.
So, here they are:
1. I don’t like the underhanded way Roosevelt went about passing the social security act in threatening to pack the Supreme Court.
2. I’m not a fan of the government confiscating our money with the promise of giving it back to us at some later date.
3. I don’t like the government confiscating our money, but still taxing us on it as if it was our money.
4. I don’t like the government taxing social security payments.
5. I don’t like the government deciding how much “other” income is allowed before social security payments become taxable. Those who are diligent in saving for retirement will be penalized.
6. I don’t like that social security is a pay-as-you-go plan, which means current recipients’ payments are funded by current workers. At the very least, the plan should have been set up as separate accounts.
7. I don’t like that the income subject to confiscation keeps going up each year.
8. I don’t like that social security has given many people a false sense of financial security, which leads many people to not save for retirement.
I’m sure there are other things I could find that I don’t like about social security, but this is a good start.
I feel the program could have been much better had it been set up as individual savings accounts rather than the pay-as-you-go plan. FDR knew what he was doing when he set it up the way he did. He knew if he set it up as a pay-as-you-go plan, it would never be done away with.