WILLisms.com: "Because every American should have their own nest egg."

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"Because every American should have their own nest egg."

The Club For Growth has launched a blog called SocialSecurityChoice.com, that "seeks to promote 'The Ownership Society' by advocating personal accounts for Social Security."

The blog is already up and roaring with great content. For example, Adam Doverspike notes:

"So many Democrats have decided to discard the fact that Social Security is on the verge of a major crisis. I enjoy calling them the Flat Earthers. The Flat Earthers seems to believe we have the best system ever and it serves everyone wonderfully. Over here in reality, we face a real shortfall of finances in my lifetime and we need to fix the system before it hits the fan."

Doverspike also notes life expectacy rates for different demographic groups:

Demographic --- Life Expectancy
All Americans 77.3

Above Average
White Females 80.3
Females 79.9
All White-Americans 77.7

Below Average
Black Females 75.6
White Males 75.1
Males 74.5
All Black-Americans 72.3
Black Males 68.8

Essentially, because of the trends expressed in this data, not only does the average African-American pay a greater proportion of his income into Social Security over his lifetime, but African-Americans receive less benefits, on average, relative to groups with longer life expectancy rates.

Also of note is this post, which offers a "historical look at the OASDI portion of the FICA tax rate since Social Security was created. (OASDI - Old Age, Survivors, and Disability Insurance)."

Calendar Year ---------> OASDI Tax Rate
1937-49 ---------> 1.000

1950 ------------> 1.500

1951-53 ---------> 1.500

1954-56 ---------> 2.000

1957-58 ---------> 2.250

1959 ------------> 2.500

1960-61 ---------> 3.000

1962 ------------> 3.125

1963-65 ---------> 3.625

1966 ------------> 3.850

1967 ------------> 3.900

1968 ------------> 3.800

1969-70 ---------> 4.200

1971-72 ---------> 4.600

1973 ------------> 4.850

1974-77 ---------> 4.950

1978 ------------> 5.050

1979-80 ---------> 5.080

1981 ------------> 5.350

1982-83 ---------> 5.400

1984-87 ---------> 5.700

1988-89 ---------> 6.060

1990-2005 -------> 6.200

Notice a trend?

Stay tuned to WILLisms.com for more on why the greatest beneficiaries of Social Security reform will be minorities.

Posted by Will Franklin · 26 January 2005 10:30 AM

Comments

I fully agree that the AARP is wrong, but it has some very good benefits. I believe you should open the possibility of protesting the bias of the organization, particularly in name of our children and grandchildren, given the fact that the average income in the AARP years tends to be the highest of any group.
In addition, I have not seen mention of the fact that the social security TAX is not tax- deductible, making it the most onerous of all taxes for a majority of Americans. Is it possible to make the individual contribution progressively non-taxable? Particularly now, when the benfits have become taxable.
By the same reason, the future contributions to personal accounts should increase progressively.
I believe the emphasis should be on a combination of Index funds and bonds, providing higher freedom as the accumulation justifies it.
Thanks!

Posted by: Raul Alessandri MD at January 26, 2005 05:42 PM

Raul,

I appreciate your comment. WILLisms.com is planning an examination in further depth of the motives and strategy behind the AARP's anti-reform posture.

Posted by: Will Franklin at January 26, 2005 09:20 PM