No doubt, Roosevelt won the Second World War. Without FDR; without America, Hitler would have conquered Europe and Russia. But FDR introduced Socialism into America too. Without him, Socialism would never have succeeded as much as it has. Instead of using Capitalism to provide ways for people to retire, FDR used a phony retirement scheme to grab 15% of everyone’s paycheck. The return to the worker who works until age 62 is less than the interest on the money taken from him/her to provide retirement money. That’s fraud.
Roosevelt forced people to pay for Social Security so they would accept a tax to pay for it. Today a person who works 40 years and collects for 20 years receives 19% of what they paid in. That presumes you live to age 82 which is also unlikely for most of us.

In other words, if you work until age 62 and live for 20 more years, Social Security costs over 5 times as much as you pay in. It’s worse than a Ponzi Scheme. It’s also Socialism, getting society to pay for your benefits.

If instead of giving the government 15% pf your income each year for 40 years you put 15% in the bank you would have 16 years of income on hand when you retire in 40 years instead of nothing as you do with Social Security. That means a person who earns $100,000 a year for 40 years and puts 15% in the bank every year will have $1.6 million in the bank at age 62 and the $1.6 million will be earning interest each year. If you earned 4% a year interest that’s $64,000 a year or $5,333 a month. Social Security pays you half that amount and when you die no one gets anything. If you had $1.6 million in a saving account your heirs would get $1.6 million.

In other words, Social Security costs you $1.6 million. Government considers your $1.6 million a tax. That’s what Roosevelt did for you when he started Social Security.

Even worse for America, Social Security Forbes calls it: “one of the most shameful (and popular) of FDR’s New Deal schemes.”

The Salesman Plan
Here’s one solution from Richard Salsman / Forbes. Here’s a plan – call it the Salsman Plan – that would ensure electoral support from all three groups, and thus potentially guarantee a political landslide for the candidate who proposes it. First, tell the elderly that they’ll no longer be subject to political scare tactics, because immediately they’ll be given an account in their name that’s full of U.S. Treasury bills and bonds, whose worth equals the present value of what they’d otherwise receive in Social Security checks for the likely balance of their lives. They can do what they wish with their new account: cash it out now, slowly liquidate it over time, perhaps buy an annuity, or keep most of it as is. Second, tell the young and the middle-aged they will no longer have to pay the 15.3% payroll tax, and they too will immediately receive an account in their name with U.S. Treasury bills and bonds, based on what they’ve already paid in so far. They too can do what they wish with their sudden investment windfall. Social Security, no longer empowered to tax payrolls or send retiree checks, would then be closed overnight.

How much new Treasury debt would be needed to create these new investment accounts? Actuaries would have to calculate the precise sum, but they already tell us that roughly $3 trillion sits in trust fund vaults as non-tradable T-Bonds. Simply transfer these to the new private accounts and declare them tradable. Next we must add the latest actuarial estimate of Social Security’s short-fall (its magnitude of insolvency) – aka, it’s “unfunded liability” (in present value terms). That’s about $20 trillion (see page 67 of the Trustees’ 2011 Annual Report), for a total of $23 trillion.

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