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Desperation, Uncertainty & Excessive Spending...

By
Real Estate Broker/Owner with North Sky Realty LLC 6502410580

In our country today, there is almost a universal climate of uncertainty.  You hear about it everywhere.  You feel it in your purchases.  The gas you buy today costs two times as much as it cost five years ago, and our elected leaders solutions of spending continue to the deperation and uncertainty pulsing through our nation.

AmericaIn the Art of War written by Sun-Tzu he describes "Excessive rewards are a sign of desperation" when trying to evaluate or befuddle ones enemy.  China loans the U.S. large sums of money upon request, and the money in turn is given as a reward to those that do not work.  Our government system has shifted over the last 50+ years towards rewarding non-production.

Let's take a look at a well known program called 'Social Security'.  Franklin Deleanor Roosevelt introduced the Social Security Program.  When it was introduced, he promised the program would be completely voluntary.  Today the program is no longer voluntary.  Originally, the participants would only have to pay 1% of the first $1400 of their annual earnings into the program.  Today is it is 7.65% of the first $90,000.

Originally, the money people elected to put into the program would be deductible from their income for tax purposes each year.  Today, it is no longer tax deductible. 

Originally the money collected from the Social Security program was to be put into an independent 'Trust Fund' and used exclusively for the the purpose of disbursements for Social Security benefits.  During the Lyndon B. Johnson administration the trust fund was dissolved and the funds were moved to the general fund, co-mingled with other tax dollars and spent.

As time progressed, the deperate rewards continued.  Originally only U.S. citizens could benefit from Social Security.  Under the Jimmy Carter adminstration the rules were modified to include immigrants.  Regardless of whether they paid into the Social Security system, immigrants began recieving retirement benefits at age 65.

The Social Security concept was upon inception supposed to be exclusively a retirement benefit program, where funds were only allowed to be withdrawn at age 65 from participating contributors.  Today, one can receive retirement benefits at almost any age, regardless of whether you contributed if you have a disability. 

Benefits were originally supposed to be tax free earnings, as it was a return of money you paid into the system.  During the Bill Clinton administration, this was changed to taxing 85% of the social security income. The vote in the Senate was actually a tie vote, and the deciding and passing vote for this choice to tax these earning was cast by Vice President Al Gore. 

Further, the definition of disability has been so watered down over the decades that now it is not uncommon to see a 20 year old recieving Social Security benefits because a Psychiatrist has labeled them 'Bi-Polar' or having a 'Learning Disability'.  When researching these new 'disabilities' one finds that there is no verifiable research supporting the conclusions, and no medical tests to support other than the opinion of a doctor.

Nevertheless it all amounts to a system that has denigrated to paying people for not working.  With other government programs under Section 8 housing and expanded 'unemployment' benefits, there is no urgency for those individuals once enrolled in the program to change their lives and emerge as independent free citizens again. 

As an example, I have a tenant in one of my houses that is section 8.  She was coached on entering theAmerica program out of high school by her aunt, who is also a section 8 recipient.  In fact, she has two other sisters also on the program.  She has three children, and receives benefits from the state for housing because she is a single mother.  Upon learning the system, she discovered that with each child comes another additional monthly sum on her benefits.  She became mysteriously pregnant last spring, and once she got the new arrival submitted her request to terminate tenancy because she was now receiving additional benefits and had found a larger place.  Interesting system isn't it?

Yet the President and Congress toss around 'Jobs programs' and 'Stimulus programs' and they all sound good on the surface, but ultimately it always creates some sort of dependency.  There is no point in tossing around tax money on 'shovel ready jobs' when we have a population that has become indoctrinated into not picking up the shovel.  This new jobs program is going to give tax dollars to businesses to employ people as if this is the real solution to the problem, when we are already spending all these tax dollars in teaching people and rewarding them on how not to work!  Amazing.

The original Social Security program was a voluntary and sensible program.  It is the alterations over the years, and introduction of other similar programs in pork barrel spending that has evolved it, and our nation into a dependency generation.  Is it any wonder that we elect Presidents like Bill Clinton, George Bush and Barrack Obama?  Men who never had any experiential track of success? 

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Comments(4)

Bonnie Vaughan
Scranton, PA
CNE SFR - Buyers/Sellers - Lackawanna & Surroundin

Michael,  Using the welfare system is not new.  In many inner cities it was a way of life for generations.  The more kids you had the more money you made. We do nothing to get these people off the dole. 

Making social security taxable was an injustice to seniors.  Their retirement income they paid into barely covers living expenses.  It is not taxable as long as they don't work.  Many seniors who find it impossible to make ends meet take a menial job.  In the end that income causes their social security income to be taxable.  Either 15% gross or 85% depending on how much they earn.  In essence the menial job requires them to pay almost double in federal withholding to cover the short fall by taxing the social security.  They wind up working for a couple of bucks an hour net.  It's disgraceful.

Sep 28, 2011 02:38 PM
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

Once the government got their hand son th emoney they changed the rules? Not our government they would never tell us one thing and do another.    ... Oh wait, my tie was on too tight and was cutting off the blood flow.

Sep 29, 2011 02:07 AM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

When the rich attorney's are elected and run the country what makes anyone feel they have our best interest at heart. They exempt theirselves from any laws that effect us  and continue to steal everything that isn't nailed down.

Oct 05, 2011 03:10 PM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

It's a sick situation we're in here and I don't see it getting any better as long as nobody is willing to pick up the shovel and start digging out of it.

Oct 05, 2011 03:55 PM