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Legal Plunder by Frederic Bastiat, 1850
"It is impossible to introduce into society a greater change and a greater evil than this: the conversion of the law into an instrument of plunder."Perry calls Social Security 'monstrous lie'
Answering a question about the future of Social Security, Governor Perry said:
It is a Ponzi scheme for these young people. The idea that they're working and paying into Social Security today, that the current program is going to be there for them, is a lie," Perry said. "It is a monstrous lie on this generation, and we can't do that to them.
Here is the government’s Ponzi scheme, which is legal plunder. Today’s workers are taxed 15.3% of their wages - that is 1 of every 6.5 dollars earned. Immediately, the government transfers this money to today’s retirees' Social Security and Medicare benefits. No money is saved or invested for the future. Very soon, there will not be enough workers to pay the promised benefits. Bluntly, government is immorally taxing today’s workers without any credible plan to fund promised benefits. Actually, this is more than legal plunder, it is abhorrent political plunder.
In reality, Perry accuses and indicts many Presidents and Congresses for using the power of government to steal from young Americans – even the unborn. Unfortunately, this moral wrong will continue. Perpetually, politicians will promise benefits to today’s voters at the expense of future generations. This is the root cause of debt and the financial crisis in almost every democracy - America, Europe and most American states.
Perry called for a national discussion to correct the ‘monstrous lie.’ First, We the People must concede and admit that politicians will continue to buy votes, while intentionally plundering future workers. Second, how do We the People stop this monstrous moral wrong? As Bastiat urged:
“… abolish that law without delay ... No legal plunder; this is the principle of justice, peace, order, stability, harmony and logic."
Third, a transition to private ownership must preserve the promises made to retirees and those nearing retirement.
Finally, it is absolutely essential that all workers have the opportunity to invest and own their retirement and medical accounts. When workers own their retirement and medical account, a country of property owners will not permit government to perpetrate this ‘monstrous lie’ and unethical political plunder.
Here is a modest proposal. Everyone that has paid the Social Security and Medicare tax will have the opportunity to opt out. The worker will deposit 7.65% of their salary into a private account for their retirement and medical needs. Additionally, the money saved and the money withdrawn from the account will not be taxed. Thus, the opted-out worker will give up their paid taxes and, in exchange, will have their personal tax-free account. Thus, greatly increasing the number of Americans with their own nest egg and giving them the freedom to choose and control their retirement needs. Additionally, America will increase savings and investments options, which will enhance entrepreneurship and economic expansion.
To stop political plunder, workers must retain the fruits of their industry and this is one proposal of many that must be considered by the American people.