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April 2010
Social Security...
or Insecurity?
by Jake Towne
“An invasion of armies can be resisted, but not an idea whose time has come.” - Victor Hugo
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Agenda
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A Free Lunch??
On January 31, 1940, the first
monthly retirement check was issued to
Ida May Fuller of Ludlow, Vermont, in
the amount of $22.54. Miss Fuller, a
Legal Secretary, retired in November
1939. She started collecting benefits in
January 1940 at age 65 and lived to be
100 years old, dying in 1975.
Ida May Fuller worked for three years
under the Social Security program. The
accumulated taxes on her salary during
those three years was a total of $24.75.
Her initial monthly check was $22.54.
During her lifetime she collected a total
of $22,888.92 in Social Security
benefits.
http://www.ssa.gov/history/briefhistory3.html#idamay
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First Insolvency - 1977
“This legislation will guarantee that from 1980 to the year
2030, the Social Security funds will be sound."
- President Jimmy Carter
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Second Insolvency - 1983
“Government is not the solution to our problem, government
is the problem."
- President Ronald Reagan
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Consumer Price Index Changes
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CPI Changes
Basket Weighing Changes
“Let Them Eat Hamburger”
“Intervention Analyses”
The “Thrill” of Hedonics
Bottom Line – SocSec payments
should be nearly DOUBLE to make up
for purchasing power contributed
http://www.bls.gov/cpi/cpidryer.htm
http://www.shadowstats.com/article/consumer_price_index
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http://towneforcongress.com/economy/unlocking-the-money-matrix-the-real-interest-rate-part-1215
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GAAP vs. Cash-Based Budget
http://www.fms.treas.gov/fr/09frusg/09frusg.pdf
http://www.shadowstats.com/article/282-federal-2009-gaap-accounting
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Unsustainable
(even on a non-GAAP basis)
http://www.irs.gov/pub/irs-pdf/i1040gi.pdf
1040 Instructions Page 101/105
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“Inlays”/Tax Revenue Dropping
http://www.fms.treas.gov/fr/09frusg/09frusg.pdf
Page 29/254
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Traditional “Political” Solutions
“Kick the Can” Strategy
Inflation Tax + CPI Alterations
Raise Retirement Age
Raise Payroll Taxes
http://www.lewrockwell.com/north/north790.html
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Practical Solutions
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Practical Solutions
Make Social Security Voluntary
Gradual Phase-Out
i.e. 100% for 60+, 90 for 50+, etc.
Cut Taxes to Increase Societal Wealth
Slash Federal Spending to the Bone
Military Expenditures
Redundant Departments
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Q&A
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Graphics Acknowledgements
Unless listed below, all photos are either mine or public domain.
The “Towne 2010 – As Good As Gold” logo was created by Derek Wyatt
The Jake Towne for United States Congress logo was created by Anthony Geist
Document Copyright
Copyright © Jake Towne, 2010. Any portion of this presentation that could be
copyrighted is owned by myself and I hereby released it to the public domain. I
grant full permission to use any of the ideas or material within. You may republish
this work. Attribution to myself is appreciated but not required.
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Replace the Socialistic Keynesian Government
Status Quo with the Austrian Free Market
Keynesian Economics
The “Money Power” is held by the
Government & Bankers
Government 'Commands' the Economy
Renown for Deficit Spending and
Stealing via Currency Debasement
Redistributes Wealth to the Military-
Industrial Complex, Banking Cartels,
Special Interest Groups & Corporations
Allows and Rationalizes Government
Takeovers of Private Businesses “In the long run, we are all dead.”
May promote “capitalism” and the “free
market” in word, but in deed functions as - Lord John Maynard Keynes
British Economist and
“Crony Capitalism,” “Vulture Capitalism,” the Central Planner
“Corporatocracy” or “Disaster Capitalism”
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Replace the Socialistic Keynesian Government
Status Quo with the Austrian Free Market
Austrian Economics
The People own the “Money Power”
Government Plays No Role in
Economic Planning
Promotes Honest Money & Balanced
Budgets
Highly Rewards those who Create
Wealth and Shares it with All
“All those intent upon Government Does Not Takeover
sabotaging the evolution
towards welfare, peace,
Private Businesses
freedom and democracy, Promotes Free Market Capitalism
loathe gold.” and laissez faire, or “let them be!”
- Ludwig von Mises economics
Founder of the modern
Austrian School
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