Why social security is bad, and what to do instead

Depending in government for anything important is very unwise. Thousands of aging Americans expect to receive social security checks at some point in time. Those checks saren’t coming, because the money has not been put aside:

“Social Security is a pay-as-you-go system, which means that payments collected today are immediately used to pay benefits”

https://www.washingtonpost.com/blogs/fact-checker/post/social-security-and-its-role-in-the-nations-debt/2011/07/11/gIQAp1Wl9H_blog.html

So, as the population’s demographic make up shifts toward more Social Security recipents than contributors (due to aging baby-boomers), Social Security payments will have to be reduced, meaning that people will get poorer, and unable to pay the rent. And get evicted, in a repeat of the recent CRA-caused crisis (http://www.federalreserve.gov/communitydev/cra_about.htm) of recent times. Either that, or government will have to compensate by giving money to the elderly. Since government does not have this money, they will have to start imagining it into being, by printing more money. This #inflation will reduce the real size of the Social Security payments, because even though their nominal amount stays the same, the money will have reduced value. This can obviously not be solved by printing more money, which will only further reduce the value of each dollar. Or by increasing payments. Which will lead to an increased need for imagined money, which…..
Now, the people cannot afford to sit by and wait for the government to do something about this; there are too many in government that want to keep the current system in tact (the “progressives”) as proven in the WP article linked above.
So, the people will have to come up with a system themselves, to replace or complement government’s hazardous system. It would be awesome if some benefactors would introduce as system of help for help, in the style of the friendly-societies of old. Using a turn-over system, or a savings system, where people will be investing money, or otherwise putting some aside, buying retirement insurance (that will not amount to much in the short amount of time left before they reach retirement age, but every penny helps!) The situation is really so desperate that we are talking about pennies.

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ludwigvanel

I am an author & an anarcharchist

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