jake towne - social in security talk in palmer (june 2010)

8/9/2019 Jake Towne - Social In Security Talk in Palmer (June 2010)

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TowneForCongress.com
http://towneforcongress.com/http://towneforcongress.com/


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Social Security...

or Insecurity?by Jake Towne

June 2010

An invasion of armies can be resisted, but not an idea whose time has come.- Victor Hugo


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Social Security...or Insecurity?

by Jake Towne

June 2010

An invasion of armies can be resisted, but not an idea whose time has come.- Victor Hugo

AgendaHistory of Social Security

ProblemsSolutions


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History of Social Security

Problems

Solutions

Agenda


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On January 31, 1940, the firstmonthly retirement check was issued toIda May Fuller of Ludlow, Vermont, inthe amount of $22.54. Miss Fuller, aLegal Secretary, retired in November

1939. She started collecting benefits inJanuary 1940 at age 65 and lived to be100 years old, dying in 1975.

Ida May Fuller worked for three yearsunder the Social Security program. The

accumulated taxes on her salary duringthose three years was a total of $24.75.Her initial monthly check was $22.54.During her lifetime she collected a totalof $22,888.92 in Social Securitybenefits.

A Free Lunch??

http://www.ssa.gov/history/briefhistory3.html#idamay
http://towneforcongress.com/http://www.ssa.gov/history/briefhistory3.html#idamayhttp://www.ssa.gov/history/briefhistory3.html#idamayhttp://towneforcongress.com/


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This legislation will guarantee that from 1980 to the year2030, the Social Security funds will be sound."- President Jimmy Carter

First Insolvency - 1977

Raised FICA Tax from 2% to >6%


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Second Insolvency - 1983Government is not the solution to our problem, government

is the problem."- President Ronald Reagan

Accelerated FICA Tax Raise

Raised Full-Benefit Retirement Age

CPI Manipulations Begun to

Decrease Payouts


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Consumer Price Index Changes


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Basket Weighing ChangesLet Them Eat HamburgerIntervention Analyses

The Thrill of Hedonics

Bottom Line SocSec paymentsshould be nearly DOUBLE to make upfor purchasing power contributed

CPI Changes

http://www.shadowstats.com/article/consumer_price_index

http://www.bls.gov/cpi/cpidryer.htm
http://towneforcongress.com/http://www.shadowstats.com/article/consumer_price_indexhttp://www.bls.gov/cpi/cpidryer.htmhttp://www.bls.gov/cpi/cpidryer.htmhttp://www.shadowstats.com/article/consumer_price_indexhttp://towneforcongress.com/


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http://towneforcongress.com/economy/unlocking-the-money-matrix-the-real-interest-rate-part-1215
http://towneforcongress.com/http://towneforcongress.com/economy/unlocking-the-money-matrix-the-real-interest-rate-part-1215http://towneforcongress.com/economy/unlocking-the-money-matrix-the-real-interest-rate-part-1215http://towneforcongress.com/


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Cash-Based vs. Accrual-BasedAccounting

Cash-Based Revenue recognition: Revenue is recognized when cash is received. Expense recognition: Expense is recognized when cash is disbursed.

Accrual-Based Revenue recognition: Revenue is recognized when revenue is earned. Expense recognition: Expense is recognized when incurred.

Ex. - Merchandising firm 30 days netGAAP (Generally Accepted Accounting

Principles) only accepts accrual-based


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Cash-Based vs. GAAP Budgeting

http://www.fms.treas.gov/fr/09frusg/09frusg.pdfhttp://www.shadowstats.com/article/282-federal-2009-gaap-accounting
http://towneforcongress.com/http://www.fms.treas.gov/fr/09frusg/09frusg.pdfhttp://www.shadowstats.com/article/282-federal-2009-gaap-accountinghttp://www.shadowstats.com/article/282-federal-2009-gaap-accountinghttp://www.fms.treas.gov/fr/09frusg/09frusg.pdfhttp://towneforcongress.com/


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SS Beneficiaries per 100 Workers1970-2083

Page 162/254 http://www.gao.gov/financial/fy2009/09frusg.pdf


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Social Security and MedicareUnfunded Liabilities = $107T

Page 178/254 http://www.gao.gov/financial/fy2009/09frusg.pdf


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Unsustainable(even on a non-GAAP basis)

30% of Inlays 37% of Outlays

http://www.irs.gov/pub/irs-pdf/i1040gi.pdf1040 Instructions Page 101/105
http://towneforcongress.com/http://www.irs.gov/pub/irs-pdf/i1040gi.pdfhttp://www.irs.gov/pub/irs-pdf/i1040gi.pdfhttp://towneforcongress.com/


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Inlays/Tax Revenue Dropping

http://www.fms.treas.gov/fr/09frusg/09frusg.pdfPage 29/254
http://towneforcongress.com/http://www.fms.treas.gov/fr/09frusg/09frusg.pdfhttp://www.fms.treas.gov/fr/09frusg/09frusg.pdfhttp://towneforcongress.com/


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Traditional Political Solutions

Kick the Can Strategy

Inflation Tax + CPI Alterations

Raise Retirement Age

Raise Payroll Tax Rate

Raise Payroll Tax Maximum

http://www.lewrockwell.com/north/north790.html
http://towneforcongress.com/http://www.lewrockwell.com/north/north790.htmlhttp://www.lewrockwell.com/north/north790.htmlhttp://towneforcongress.com/


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Practical Solutions

Start With the End in Mind

Acknowledge the Social Contract Theft of Current Generation's PayRobbery from Current Recipients of

Purchasing Power Paid In


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Practical Solutions

Make Social Security VoluntaryGradual Phase-Out

i.e. 100% for 60+, 90% for 50+, etc.

Cut Taxes to Increase Societal Wealth

Slash Federal Spending to the Bone

Military ExpendituresRedundant 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

Copyright Jake Towne, 2010. Any portion of this presentation that could becopyrighted is owned by myself and I hereby released it to the public domain. Igrant full permission to use any of the ideas or material within. You may republishthis work. Attribution to myself is appreciated but not required.

Document Copyright


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Replace the Socialistic Keynesian GovernmentStatus Quo with the Austrian Free Market

The Money Power is held by theGovernment & Bankers

Government 'Commands' the Economy

Renown for Deficit Spending andStealing via Currency DebasementRedistributes Wealth to the Military-

Industrial Complex, Banking Cartels,Special Interest Groups & Corporations

Allows and Rationalizes Government

Takeovers of Private BusinessesMay promote capitalism and the freemarket in word, but in deed functions asCrony Capitalism, Vulture Capitalism, theCorporatocracy or Disaster Capitalism

Keynesian Economics

In the long run, we are all dead.

- Lord John Maynard KeynesBritish Economist and

Central Planner


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Replace the Socialistic Keynesian GovernmentStatus Quo with the Austrian Free Market

The People own the Money PowerGovernment Plays No Role in

Economic PlanningPromotes Honest Money & BalancedBudgets

Highly Rewards those who CreateWealth and Shares it with All

Government Does Not Takeover

Private BusinessesPromotes Free Market Capitalismand laissez faire, or let them be!economics

Austrian Economics

All those intent uponsabotaging the evolutiontowards welfare, peace,

freedom and democracy,loathe gold.

- Ludwig von MisesFounder of the modern

Austrian School

jake towne - social in security talk in palmer (june 2010)

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