There is a fundamental flaw in how the Government approaches retirement and, for that matter, just about everything it processes. Its typical approach is to present a “Presumption of Cause.” This then becomes its means by which it affects a sort of self-endorsement or perceived legitimacy. It’s purpose then become not the process of perfecting an environment but one whose desire is to simply further control it. Then, as we can see throughout the last 110 years of American History, its ambitions become unsustainable failures which then triggers its own summary resolution for addressing the problem it creates which is to simply camouflage the foul by executing further errors in judgment. This is Progressive Government! You doubt this? The Federal Government is not sufficient proof? Then take a look at the State of California, the poster child for self-destructive gluttony. No good enough? Look at the History of Argentina, try the U.K., France, Germany, the Netherlands or Mexico to name a few. Progressive ideology’s legacy of success!
Take for example, the Financial Modernization Act of 1999 vs. the so called “Volker Rule”. Clearly there is a systemic problem with the Financial System in this Country and it most assuredly predates 1999 (e.g., Garn-St.Germain-1982 & the Deposit Institutions Deregulation & Monetary Control Act – 1980 which gave rise to the S&L debacle) however, whereas the intelligent thing to do would be to attack the cause, i.e., rescind the FMA of 1999, instead they opt to create yet another self-serving resolution. No, the FEDS aren’t looking to fix the problem; they are simply looking to mask the systemic entitlement(s) from Public view or scrutiny.
In the case of “retirement funding”, the error in judgment is equally conspicuous. It should be clear to all that the reason Social Security is such an abysmal failure (as is Medicaid/Medicare) is largely due to the fact that (1.) Government loves the liquidity these funds create. And, (2.) These funds have absolutely no “Recourse for Failure.” In other words, no one pays for the pain of abuse but the lowly Taxpayer.
To suggest that the solution is to create yet another series of Tax Credits and to further burden the Private Sector with yet another “enforced mismanagement” is to also prove my Premise. We should also retrieve one inescapable fact: Social Security, Medicaid and Medicare are now at $115 Trillion in unfunded mandates and growing at an annual rate approach $1.5 Trillion. How did we arrive at the conclusion that shifting Tax Revenues extracted from the Private Sector and redistributed in the form of Tax Credits to encourage Retirement Savings, is a functional remedy? Clearly it is not.
The first order of business is to completely STRIKE the notion that Government can manage these programs.
In the third Volume, “Valor in Prosperity,” of my three-book Series Entitled “Blind Vision”, I discuss these issues in great detail and the functional solutions to each. Here are a few general concepts from one of the possible solution I discuss: (1.) Suspend contributions to Social Security for any person under the Age of 55. In its place we establish a “dollar 1” tax exclusion from ALL Household income under $100,000 provided that the “Household” (tax filer) contribute 12.5% of their gross annual income to a “managed” (more on this in Volume III) retirement fund. (2.) For Households over the age of 55, the Government funds a monthly annuity equal to an established projected yield to a life expectancy age of 85. (3.) Redefine what constitutes “retirement” from a Social Mandate to an Individual Responsibility. In other words, retire when you can afford to. By the way, I resolve the issue of Health Insurance in much the same way, I believe a level-minded person will find it quite functional.
I am beside myself with disbelief that so many People are committed to the death of this Country! On one hand I’ll hear how intrusive the Government has become and the next moment, from the very same person, I’ll here them express how the Government should do something about it! Then of course there are those who complain about the cost of Health Care and then express the same seemingly ubiquitous ignorance by suggesting that Universal Health Insurance is the fix! It is precisely because of Universal Health Care (Medicaid/Medicare) that the current system is in a near unsalvageable state!
Worse yet is the simpler truth that the Politician will look for ever more fertile fields to plant the seeds of our future destruction each drawn from the seemingly endless “Presumption of Cause” stores! If you endured the Presidents “State of the Union” presentation, I counted no less than 7 new renditions drawn from the bowels of the absurd! Will it EVER end!
The U.S. Economy is not suffering because the Federal Government doesn’t spend enough, its suffering because not only does the Government spend TOO much, Government excess consume wealth that would otherwise be the source of economic development and expansion!
The typical U.S. household suffers from the dismissive practices of Government who prefers its own advancement at the expense of the People it is charged to serve. Market liquidity on Wall Street (which is a contradiction in terms as Wall Street has never created Market Liquidity – every U.S. Dollar in circulation, since 1913, is created by the FED) does nothing for the American Citizenry and the Native Economy. It “does” ONLY for the entities who orchestrate the markets and though that is not necessarily a disagreeable reality, it quickly becomes one when the Government becomes a co-conspirator in the process!
No, there is no “Fixing Retirement Progressive Style” without first addressing the systemic problem(s) which inevitably have rendered any prospect of retirement, for most, out of the question!
How about we consider solving a few of the existing problems before creating yet another!
Curtis C. Greco, Founder
