Welcome to the worlds of Social Security and Medicare, the third rails of American politics. It has effectively been political suicide, for any politician to speak negatively about these favorite government programs. This appropriate analogy is derived from the third rail of an electrically powered train, which is charged with high voltage and thus lethal to touch.
Social Security and Medicare are Federal Ponzi operations; which are otherwise known as Federal or National Ponzi schemes. Such government behemoths constitute the most dangerous hybrid models of a variant classic Ponzi scheme design. The federal government has enacted these immoral and socialistic wealth transfer schemes into law, which is the crucial problem.
Americans born after about 1965 will be the ultimate victims, of our well intentioned but foolish federal schemes. They will rightfully be angry and perhaps riotous, after paying conscription stakes all of their working careers and then nothing remains for them. Moreover; scheme collapse will occur well before the Boomer's needs have been completely met.
Genesis of Social Security
The American 1930's era was a climate of big business, cigar smoking, gambling, gangsters and government. Everything was flamboyant with innovative ideas being common in juvenile America. Moreover; the social security scheme had already been invented and implemented in Germany, by Chancellor Otto von Bismarck in 1889. To FDR and his associates; absolutely no better scheme could be conceived, which appeared to prevent or solve poverty for the elderly and also guarantee many grateful votes for democrats.
However due to human nature; receipt of money tends to oblige voters, which is a serious detriment against our republic. With a virtually unlimited worker pool and giddy with abundant praises received, congress was only too happy to communicate their successes to voters. Subsequently, congress then obliged their constituencies with cost of living raises, disability benefits, dependent benefits, and Supplemental Security Income (SSI). Moreover; special inclusion was made for certain groups, who had paid very little into the system.
In 1935, congress was politically motivated to create an effective federal retirement pension, by a genuine desire to do a good humanitarian deed for seniors following the Great Depression. There was also a sincere desire to relieve suffering of the aged, by giving them a modest income. Consequently; FDR and the New Dealers of the 1930’s should be given a presumption of innocence, regarding intent of malice to defraud American citizens. The author believes that our 1930's federal government thought it had designed a failure proof scheme, which would be true social security for senior citizens in virtual perpetuity.
But for American workers; FDR and his political associates did not perform their fiduciary duty, to analyze the potential catastrophic future outcome of Social Security. In their minds, the behemoth's engineering scale seemed just too big to fail. Consequently; the scheme appeared to be such a sweet deal, for making perpetual money.
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