…or why Charles Ponzi wasn’t as much of a liar as your average US Senator.

Yes. This is a part of socialism. Social Security is a socialized insurance scheme. Allowing the government to handle money YOU earned yields a NEGATIVE return on investment.  Imagine, if you will….

…working your entire life and reaching the retirement age of 67.  By that time, an average worker will have paid into Social Security in the form of taxes* around $600,000.  With a 5% return obtained by investing the same money in the stock market, that money would be worth $1.9 million.  Annual interest on the $1.9 million would be $95,000.  With Social Security and the same $600,000, the government promises to deliver $3,075 per month at age 67, which is $37,000 per year.  $95,000 per year versus $37,000 per year?  Hmm…

So…tell me again why do you allow the government to handle your money? Look at your pay stub. Your employer makes a contribution on your behalf and you make a contribution on your own behalf. But you made ALL the money through YOUR work for your employer. It’s NOT your employer’s money that he somehow graciously gives you from the magic pot of money he keeps under his desk. Your work. Your money.

It’s yours. You should keep it. Why? Because only you will handle your money in a way that’s best for you.

Pro Tip #1: Social Security is not actual theft, per se. In the investment world it’s called LOSS of OPPORTUNITY cost. And, yes…it is a real cost.

Pro Tip #2: Socialized Insurance schemes are not actually insurance in the proper sense of the word. Why not? Because risk is not amortized (spread out over time or a large risk pool) where someone may suffer a potential financial loss. This CAN happen in the private sector but NOT the public.  The Federal Government does not and should not act like a private insurance company.  The incentives and disincentives are entirely different.  IOW…politicizing financial risk is, well…a dumb thing to do.

Pro Tip #3:*  Any money given to the government is a tax.  It’s not a voluntary exchange like money placed in your own retirement account would be.  That’s what makes it a tax; the lack of your consent and the element of coercion. Ipso factosocialism must necessarily involve coercion and the loss of opportunity.