Willisms
Navigation

Buy WILLisms

XML Feed


Featured Entries

The Babe Theory Of Political Movements.
Mar. 21, 2005 11:50 AM

Iran's Sham Election In Houston.
June 20, 2005 5:36 AM

Yes, Kanye, Bush Does Care.
Oct. 31, 2005 12:41 AM

Health Care vs. Wealth Care.
Nov. 23, 2005 3:28 PM

Americans Voting With Their Feet.
Nov. 30, 2005 1:33 PM

Idea Majorities Matter.
May 12, 2006 6:15 PM

Twilight Zone Economics.
Oct. 17, 2006 12:30 AM

The "Shrinking" Middle Class.
Dec. 13, 2006 1:01 PM

From Ashes, GOP Opportunities.
Dec. 18, 2006 6:37 PM

Battle Between Entitlements & Pork.
Dec. 21, 2006 12:31 PM

Let Economic Freedom Reign.
Dec. 22, 2006 10:22 PM

Biggest Health Care Moment In Decades.
July 25, 2007 4:32 PM

Unions Antithetical to Liberty.
May 28, 2008 11:12 PM

Right To Work States Rock.
June 9, 2008 12:25 PM



Donate





Links

Blogroll Me!







Search



Archives

July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005
April 2005
March 2005
February 2005
January 2005
December 2004




Social Security Reform Thursday.
March 13, 2008

Caption Contest: Enter Today!
Due: July 29, 2008

The Carnival Of Classiness.
Mar. 14, 2006

Quotational Therapy: Obama.
Apr. 4, 2008

Mainstream Melee: Wolfowitz.
May 19, 2007

Pundit Roundtable: Leaks.
July 9, 2006

A WILLisms.com(ic), by Ken McCracken
July 14, 2006




Credits

Powered by Movable Type 3.17
Site Design by Sekimori




WILLisms.com June 2008 Book of the Month (certified classy):











The WILLisms.com Gift Shop: Support This Site

giftshopbanner.gif











This Week's Carnival of Revolutions: carnivalbutton.gif



Carnival Home Base: homebase.gif

























Willisms

« The Louisiana Libertarian Lives. | WILLisms.com | Quotational Therapy: Part 43 -- Huey P. Long, Socialist. »

Social Security Reform Thursday: Week Thirty-Two -- Dependency and Social Security.

reformthursdayblue.gif

Thursdays are good days for reform, because they fall between Wednesdays and Fridays. And reform is a long-haul process, not a fleeting event.

That's why WILLisms.com offers a chart or graph, every Thursday, pertinent to Social Security reform.

This week's topic:

Dependence On Social Security.

In the aftermath of Hurricane Katrina, it quickly became evident that hundreds of thousands of Americans would be completely at the mercy of other Americans, and wholly dependent on the aid of strangers, for a long time.

But just how many people were already dependent on government for their every need before Hurricane Katrina?

Lots.

Subsidized or public housing, public transportation, public schools, and public assistance for food and clothing and medicine. The works. But how many folks were dependent on a Social Security check for nearly their entire retirement benefit?

Lots.

And in the aftermath of Hurricane Katrina, the United States Postal Service and the Social Security administration are scrambling to deliver benefit checks to displaced individuals:

In the days since the storm moved through, officials have handed out about 10,000 Social Security checks in Mississippi and 5,000 in Louisiana....

...for some 720,000 customers around New Orleans deliveries are not possible.

In Mississippi alone, approximately 100,000 people in Mississippi are still unable to get mail.

A nightmare. Many people who are now temporarily dependent on government (and churches and individuals and corporations and charities, etc.) for everything, were already dependent on government for nearly everything.

socialsecurityincome.gif

For one out of five Americans over the age of 65, Social Security is the only source of income. For one out of three, it is the source of about 90% or more of income. And nearly 2/3 of "chronologically enhanced" Americans depend on Social Security for more than half of their income.

That is astoundingly high.

It's no wonder a relatively high poverty rate persists for elderly minorities, in particular:

povertyforoldpeople.gif

Near poor, in the above chart, refers to those between 100% and 125% of the poverty line. Women are particularly hard hit, as are African-Americans and Latinos.

So many of the evacuees from New Orleans were already poverty-stricken, living day-to-day, week-to-week, and month-to-month, depending on Uncle Sam for food, clothing, shelter, and medicine, just to name the necessities.

In some ways, it was an entirely rational decision to STAY PUT, even in the path of the hurricane. Why expend resources to get out of town, possibly for a false alarm or a measly Category 1 or 2 storm, when the Social Security check comes in the mail in just a couple of days?

And today, we see the mad scramble to divert Social Security checks to the proper individuals in the Astrodome and elsewhere scattered around the country. If that is their only source of income, they need those checks.

And this also explains why older Americans are so reluctant to reform Social Security. They worry they may not get their checks.

No checks, no money. No money, no necessities of life.

Now, imagine if FDR had set up a Social Security system with personal accounts, instead of the failed pay-as-you-go pyramid scheme system of funding we have today. Or even some sort of hybrid system. Anything but the way it is done now.

Not only would some of those elderly evacuees now have something in the form of assets to get them through this disaster and help them start a new life elsewhere, many of them would not have depended so exclusively on the government for aid, living from benefit check to benefit check, BEFORE Katrina even hit.

That's what Social Security reform is all about. Empowering individuals. Giving people a chance to grow assets that belong to them, not theoretical benefits that trickle in through the mail each month. Breaking the cycle of dependence on month-by-month checks from the government. And giving people the chance to pass the fruits of their lifetimes of labor onto their children and their children's children.

African-American communities would benefit disproportionately more than nearly any other group from Social Security reform with personal accounts. Today, according to the Cato Institute, the typical black household has 10% the level of assets (net worth) the typical white household has (.pdf) Social Security reform would certainly narrow that gap. Furthermore, African-Americans on average get a much poorer return on their Social Security contributions than whites, because of shorter life-expectancy rates. Indeed, many blacks see a negative rate of return on their lifetime of contributions.

One reason many anti-reform types often give for opposing modernization of Social Security is that it works so well, as-is, to eliminate poverty.

BZZZZT.

Wrong.

No it doesn't. Social Security is, as-is, a failure. Over the years, Social Security has mitigated some poverty, to be sure, but at the same time, it robbed each and every working American of the opportunity to earn compound interest in personal "lockbox" account. And it has fed into the cycle of dependency for the poorest Americans.

And in the coming years, without reform, Social Security will leave even more individuals in poverty than it does today.

In the future, if America is to remain on top of the world, economically, we must empower individuals. It is time to give all Americans a hand up, rather than a modest monthly handout. We must reform Social Security.

The clock is ticking.


--------------------------------

Previous Reform Thursday graphics can be seen here:

-Week One (Costs Exceed Revenues).
-Week Two (Social Security Can't Pay Promised Benefits).
-Week Three (Americans Getting Older).
-Week Three, bonus (The Templeton Curve).
-Week Four (Fewer Workers, More Retirees).
-Week Five (History of Payroll Tax Base Increases).
-Week Six (Seniors Living Longer).
-Week Six, bonus (Less Workers, More Beneficiaries).
-Week Seven (History of Payroll Tax Increases).
-Week Seven, bonus (Personal Accounts Do Achieve Solvency).
-Week Eight (Forty Year Trend Of Increasing Mandatory Spending).
-Week Nine (Diminishing Benefits Sans Reform).
-Week Ten (Elderly Dependence On Social Security).
-Week Eleven (Entitlement Spending Eating The Budget).
-Week Twelve (Benefit Comparison, Bush's Plan versus No Plan).
-Week Thirteen (Younger Americans and Lifecycle Funds).
-Week Fourteen (The Thrift Savings Plan).
-Week Fifteen (Understanding Progressive Indexing).
-Week Sixteen (The Graying of America).
-Week Seventeen (Debunking Myths).
-Week Eighteen (Debunking Myths).
-Week Nineteen (Reform Needed Sooner Rather Than Later).
-Week Twenty (Global Success With Personal Accounts).
-Week Twenty-One (GROW Accounts: Stopping The Raid).
-Week Twenty-Two (Millions of Lockboxes).
-Week Twenty-Three (Support for Ryan-DeMint).
-Week Twenty-Four (KidSave Accounts).
-Week Twenty-Five (Latinos and Social Security).
-Week Twenty-Six (AmeriSave).
-Week Twenty-Seven (Cost Of Doing Nothing).
-Week Twenty-Eight (Chile).
-Week Twenty-Nine (Entitlement Spending Out Of Control).
-Week Thirty (Reform Better Deal Than Status Quo).
-Week Thirty-One (Social Security As A Labor Cost).

Tune into WILLisms.com each Thursday for more important graphical data supporting Social Security reform.

Posted by Will Franklin · 8 September 2005 10:59 PM

Comments

It was almost Reform Friday!... You have spoiled us for a good while now...Once again reform "Thursday" rocks at WILLisms.com!...

Posted by: Zsa Zsa at September 9, 2005 06:36 AM

BZZZZZT!... I like that...

Posted by: Zsa Zsa at September 10, 2005 03:56 PM