Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: Social Security

The Tax Foundation’s Big Surprise: Trump’s Tax Plan is Better Than Hillary’s!

This article was published by The McAlvany Intelligence Advisor on Friday, October 21, 2016:  

English: The standard Laffer Curve

The standard Laffer Curve

The Tax Foundation, founded nearly 80 years ago, considers itself non-partisan, guided by what it calls “the principles of sound tax policy, simplicity, transparency, neutrality, stability, no retroactivity, broad [tax] bases and low [tax] rates.” It has steadfastly opposed tax increases of any kind: income, corporate, or excise. Especially annoying are tax “preferences” (i.e., subsidies) for the housing industry and tax credits for certain constituencies (which the Foundation calls “picking winners and losers”).

So it’s no surprise that in its study of Trump’s and Clinton’s so-called “tax plans” the Foundation concluded that Trump’s was vastly superior to Hillary’s:

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Tax Foundation Rates Tax Plans of Trump and Clinton: Trump’s Plan Wins

This article appeared online at TheNewAmerican.com on Thursday, October 20, 2016:

Tax Foundation

Tax Foundation (Photo credit: Wikipedia)

Analysis by the Tax Foundation of all that is currently known about the tax plans proposed by presidential candidates Donald Trump and Hillary Clinton concludes that, if enacted, Clinton’s plan would expand government at the expense of a shrinking economy. On the other hand, Trump’s plan would grow the economy, shrink government’s revenues, raise wages, and expand employment.

But it’s not tax “reform,” claims the study’s author, Kyle Pomerleau,

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Candidates Silent as Government Spending Jumps, Deficit Increases

This article appeared online at TheNewAmerican.com on Monday, October 17, 2016:  

On Friday, the Treasury Department published the final revenue and spending numbers for the federal government for Fiscal Year 2016, which ended on September 30. According to Treasury’s report, spending increased significantly (by nearly five percent) over the previous year, to more than $3.8 trillion, while revenues remained essentially flat from the year before, at $3.25 trillion. That left a shortfall of approximately $600 billion, forcing the government to borrow 15 cents of every dollar it spent last year. And the two presidential candidates have remained disturbingly silent about the issue.

Said Robert Bixby, the executive director of the Concord Coalition, a non-partisan group that favors reducing the deficit,

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Frederic Bastiat Wouldn’t Approve of Social Security

This article was published by The McAlvany Intelligence Advisor on Wednesday, October 12, 2016:  

Frédéric Bastiat

Frédéric Bastiat

Frederic Bastiat was a “classical liberal” who lived briefly in the first half of the 19th century in France. But his legacy, including his development of the fallacy of the broken window through his Parable of the Broken Window continues to resonate today. He is perhaps best known for his definition of “legal plunder”:

But how is this legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime.

When it was enforced at the point of a pistol by a government bureaucrat, Bastiat opposed it:

I do not dispute [politicians’] right to invent social combinations, to advertise them, to advocate them, and to try them upon themselves, at their own expense and risk. But I do dispute their right to impose these plans upon us by law – by force – and to compel us to pay for them with our taxes.

There’s little doubt, then, that Bastiat would support the philosophy of The Bastiat Society, founded a dozen years ago:

Capitalism is the only economic system to produce widespread peace and prosperity. But if those in the private sector do not understand the intellectual and cultural institutions that make entrepreneurship and peaceful trade possible, what chance do they have to withstand a steady series of attacks from those who desire to bring capitalism and personal freedom to an end?

One of the battles that freedom lost was Social Security. Enacted as part of FDR’s Great Society, it remains a fixture that appears to be immovable. Today the only conversation heard is how to keep it from going bankrupt.

All manner of “fixes” are proposed. Obama’s National Commission on Fiscal Responsibility and Reform came up with ten fixes while The Motley Fool proposed 15:

  1. Cut benefits across the board right now;
  2. Change the COLA;
  3. Raise the earnings cap;
  4. Allow beneficiaries to invest in the stock market;
  5. Do nothing and cut benefits when the [trust fund] is depleted;
  6. Do nothing and enact payroll tax hikes when the [trust fund] is depleted;
  7. Offer a buyout [to the wealthy, removing them from the program];
  8. Link life expectancies to benefit levels;
  9. Means-test [to qualify] for benefits;
  10. Raise the full retirement age;
  11. Use the Estate Tax to cover Social Security [shortfalls];
  12. Freeze the purchasing power of benefits [i.e., eliminate COLA altogether];
  13. Freeze the … benefits on a sliding scale;
  14. Transfer [some] costs to [the] government [now]; and/or
  15. Increase the payroll tax on everyone right now.

Social Security has the peculiar characteristics similar to Bernie Madoff’s Ponzi scheme: eventually it is exposed and it ends in bankruptcy. The difference is that Social Security is enforced by people with guns and badges: everyone must be covered and forced to support everyone else, or else.

No one questions the math: the program’s “trust fund” is slowly being liquidated to cover the annual shortfalls between revenues and benefits. Thanks to the Baby Boomers, the liquidation is increasing more rapidly: those Boomers have developed the nasty habit of living longer, far beyond the original mortality tables predicted back in the mid-1930s. There’s also the declining birth rate, which is reducing the number of new entrants into the system whose taxes are needed to support it.

It’s the ideology: freedom versus force. So-called conservatives want to fix it, as do liberals. Conservatives, when pressed, question the intergenerational conflict that requires young people to contribute to a plan paying benefits to seniors. They question the use of resources: tax and spend now, or save and invest for later. Conservatives even argue over who should control the money. They never question its morality.

Liberals think it’s a proper function of government, going along with the Supreme Court’s decision in Helvering v. Davis that the program is constitutional, the Tenth Amendment notwithstanding.

As economist Herb Stein noted: “If something cannot go on forever, it will stop.” With Social Security it will continue as long as it can be patched up with temporary fixes. Eventually the mathematics and the bond market will end it.

Social Security to Announce Tiny Increase in Benefits for Next Year

This article appeared online at TheNewAmerican.com on Tuesday, October 11, 2016:  

Seal of the United States Social Security Admi...

Next Tuesday the Bureau of Labor Statistics (BLS) will announce Social Security’s COLA (Cost of Living Adjustment) for 2017. It is widely anticipated to be between nothing and $3 a month for the average beneficiary.

But Medicare premiums (retirees are often expected to pay a monthly fee for coverage) for seniors receiving Social Security retirement benefits are expected to jump nearly $30 a month. That premium increase would reduce the average retirement benefit by about $25 a month, except that Congress had inserted a “hold harmless” provision into Medicare law. Instead, the premium increase will be funded by Medicare, thereby hastening the day when that part of Social Security runs out of money.

The statistics reflective of the current gradual liquidation of Social Security’s so-called Trust Fund are familiar to most recipients:

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California’s Gun Violence Restraining Orders: Grandpa Older, Armed, Therefore Dangerous?

This article appeared online at TheNewAmerican.com on Monday, August 22, 2016:  

Richard Swift could be anyone’s grandfather. Born in 1949, he grew up around guns. He got his first .22 at age 12 and learned how to pick off rodents on his family farm in southeastern Pennsylvania. Said Swift: “Mostly, I was just shooting things that were there, like a stick floating down the creek. I’d shoot bumblebees if they settled on a limb … any kind of small, challenging target.”

When he joined the National Guard, he competed in marksmanship matches, and when he delivered cash between branches of a local bank, he carried a firearm for protection.

But now he’s retired and still owns that .22, along with a couple of other rifles, two pistols, and a pair of shotguns. And he has no plans to dispose of any of them.

And that makes Shannon Frattaroli very nervous.

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Rights Are Lost Slowly, Over Time, and Then All at Once

This article was published by The McAlvany Intelligence Advisor on Monday, August 22, 2016:  

German Pastor Richard Niemoller (pictured) wasn’t the first to discover how totalitarians complete their takeover, but he is remembered for waxing poetic about just how the strategy works:

First they came for the Socialists, and I did not speak out – because I was not a Socialist.

 

Then they came for the Trade Unionists, and I did not speak out – because I was not a Trade Unionist.

 

Then they came for the Jews, and I did not speak out – because I was not a Jew.

 

Then they came for me – and there was no one left to speak for me.

In the early 1930s, Niemoller supported Hitler. But when he observed the tyrant’s strategy of isolating his enemies and then eliminating them one by one, he opposed him. Niemoller spent years in a German concentration camp, and, upon his release in 1946, explained what he had seen with his own eyes:

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Trump’s Plan for “Winning the Global Competition”

This article appeared online at TheNewAmerican.com on Tuesday, August 9, 2016:  

During his hour-long speech on Monday at the Detroit Economic Club, Republican Party presidential nominee Donald Trump was serious and reasonable, avoiding histrionics and the temptation to push back against protesters who interrupted him several times. He followed his script and peppered the economic landscape with his wish list of actions he would take as president to “Make America Great Again.”

It was a very long list:

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If Chosen as Hillary’s VP, Tim Kaine Would Be Invisible

This article appeared online at TheNewAmerican.com on Friday, July 22, 2016:  

Governor Tim Kaine of Virginia.

As chances continue to improve that Hillary Clinton will name Virginia Democrat Senator Tim Kaine (above) as her vice-presidential running mate later this afternoon, a closer look at the affable, non-controversial socialist reveals a man not likely to interfere with the Clinton presidency if she wins in November.

He has all the credentials of a socialist and all the charm that is sorely lacking in his would-be running mate.

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Latest CBO Report “Grim”; Offers No Solutions to National Debt

This article appeared online at TheNewAmerican.com on Friday, July 15, 2016:  

Ida May Fuller, the first recipient

Ida May Fuller, holding the first check from the Social Security Administration

On Tuesday, the Congressional Budget Office (CBO) published its annual report on the country’s long-term budgetary and financial outlook. One need only to see the chart on Page One of the report to see why CBO’s Justin Bogle said the outlook was “grim”: It shows government spending growing so much more quickly than anticipated revenues that annual deficits will likely triple in the next 30 years, if not sooner. Bogle called this scenario unsustainable.

For the first time, the CBO built into its assumptions the projected impact of ObamaCare, the country’s declining birth rate, the explosion of Baby Boomers demanding benefits from Social Security and Medicare over that period, plus Boomers’ increasing life expectancies and the increasing costs of providing them healthcare along the way.

It also assumed that government debt will

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Finding the Perfect VP for The Donald

This article was published by The McAlvany Intelligence Advisor on Wednesday, July 6, 2016:  

English: Flag of the Vice President of the Uni...

Flag of the Vice President of the United States

Paul Manafort, Donald Trump’s chief campaign strategist, has no doubt a long and carefully considered list of criteria which The Donald’s VP must meet in order to be offered the position. The clock is ticking: he is due to make the announcement next week, before the Republican convention, which begins on Monday the week following.

His list is short:

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What is the Definition of Tyranny? Ask the Bureaucrats in the Social Security Administration

This article was published by The McAlvany Intelligence Advisor on Monday, June 13, 2016:  

The Founders, the beneficiaries of a classical education that far exceeds that present in the United States, knew the enemy of freedom intimately. George Washington said that “Government is not reason. It is not eloquence. It is force. Like fire, it is both a dangerous servant and a fearful master.” Thomas Jefferson expressed it differently:

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Obama Does a 180 on Social Security; Now Wants to Expand Its Benefits

This article appeared online at TheNewAmerican.com on Monday, June 6, 2016:  

Social Security (play)

In a breathtaking reversal that far-left progressives are calling a victory, President Obama said in a speech in Elkhart, Indiana, on Wednesday that Social Security benefits should be expanded and made more “generous”:

And then we have to tackle retirement security. That’s something that keeps a lot of people up at night. … Let’s face it — a lot of Americans don’t have retirement savings. Even if they’ve got an account set up, they just don’t have enough money at the end of the month to save as much as they’d like because they’re just barely paying the bills. Fewer and fewer people have pensions they can really count on, which is why Social Security is more important than ever.

 

We can’t afford to weaken Social Security. We should be strengthening Social Security. And not only do we need to strengthen its long-term health, it’s time we finally made Social Security more generous and increased its benefits so that today’s retirees and future generations get the dignified retirement that they’ve earned. And we could start paying for it by asking the wealthiest Americans to contribute a little bit more. They can afford it. I can afford it.

This was met with huzzahs from the Left. Hillary Clinton tweeted,

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Something is Wrong When A “Fine Arts” Major Has to Defend Social Security

This article was published by The McAlvany Intelligence Advisor on Monday, June 6, 2016:  

Following President Obama’s statement last Wednesday that Social Security benefits ought to be expanded and made more “generous,” someone at the Washington Post thought it would be a good idea to tout the wonders of that welfare state program. Rather than pick someone with some credentials as an economist, even a liberal one, the Post instead picked Jared Bernstein (above) to do the honors. Which he did:

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Trump Suggests National Debt “Deal,” Media Calls It “Fanciful” and “Dangerous”

This article appeared online at TheNewAmerican.com on Monday, May 9, 2016:  

A snippet from Donald Trump’s conversation with CNBC on Thursday raised the ire of numerous media commentators, who called Trump’s plan “unprecedented” (CNBC), “fanciful” and a “threat” (New York Times), and “tantamount to a debt default” (Yahoo Finance). Others called his remarks “reckless,” while Tony Fratto, a former Treasury official in the George W. Bush administration said, “This isn’t a serious idea — it’s an insane idea.”

What sparked the ire? The initial impetus was when Trump said, “[The U.S. Treasury is] paying a very low interest rate. What happens if that interest goes up two, three, four points? We don’t have a country. I mean, if you look at the numbers, they’re staggering.”

Indeed they are. The U.S. Debt Clock shows the national debt closing in on $20 trillion, while the economy is slumping along, with a GDP at just over $18 trillion. Put another way,

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Gun Sales Set Records, Likely to Continue

This article appeared online at TheNewAmerican.com on Friday, May 6, 2016:

According to the FBI, more than two million gun-purchase background checks were conducted in April, 400,000 more than in April a year ago. In fact, every month since last May, background checks have set new records, putting 2016 on track to beat 2015 for the number of checks conducted by the National Instate Criminal Background Check System (NICS).

In its report the FBI noted that there is no direct one-to-one correlation between background checks and gun sales, but it’s close. Especially if one tracks the performance of stocks of Sturm Ruger & Co. and Smith & Wesson in the last 12 months.

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Social Security Inching Its Way Toward Bankruptcy, Says CBO

This article appeared online at TheNewAmerican.com on Monday, January 25, 2016:  

The latest report from the Congressional Budget Office (CBO) on the financial condition of Social Security merely confirms what the Social Security trustees have been saying for years: The welfare-state program that spent nearly a trillion dollars last year isn’t sustainable.

In July Treasury Secretary dazzled the press with his waffle: The program is safe and sound, but it faces problems:

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Factory Owners Increasingly Going Robotic

This article was published by The McAlvany Intelligence Advisor on Monday, January 25, 2016:  

Picture a factory where the owner has cut his Social Security and Medicare taxes by 90 percent. Where surveillance by the EEOC (Equal Employment Opportunity Commission) no longer exists. Where minimum wage laws don’t apply. Where there are no more reports to be filed with OSHA. Where the factory doesn’t have to be retrofitted to handle handicapped employees. Where there is no “family time” off for pregnancies. Where there are no pension or health care plans to fund. Where there are no unemployment insurance taxes. Where no one is demanding special break rooms and time off for prayers. Where Obamacare doesn’t apply. No transgender bathrooms. No lunchroom or recreational facilities.

It’s already happening in China’s Pearl River Delta (dubbed “the world’s workshop”).

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Robots Transforming China, Causing Heartburn at World Economic Forum

This article appeared online at TheNewAmerican.com on Monday, January 25, 2016:  

Shenzhen Evenwin Precision Technology Company, located in China’s Pearl River Delta (dubbed “The World’s Workshop”), has nearly completed the first stage of turning its plant that produces mobile phone components into one of the world’s first nearly 100-percent robot-operated factories. According to the company’s chairman, Chen Xingai,

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How the Establishment Does Business in Washington

This article was published at The McAlvany Intelligence Advisor on Wednesday, October 28, 2015: 

English: U.S. President Barack Obama meets wit...

Just a visit between old friends

In Washington, it is said that laws are like sausages: no one wants to know exactly how they are made. Washington, controlled as it has been by the Establishment for decades, makes laws like sausages, keeping everyone in the dark and happy, except the taxpayer.

Just who is this ephemeral, invisible, ever-present establishment? In three minutes, a caller to Rush Limbaugh’s radio show on September 15, nailed it:

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.