I Did The Math!
I Did The Math!
Recently there has been a lot of talk about government funding for what is called “Entitlement Programs”. Among those programs is Social Security and Medicare … which our government claims are slowly going broke. What is worse is they are trying very hard to get people to believe these “Entitlement Programs” are un-earned.
Issue #1: The government doesn’t fund Social Security and Medicare. These programs are funded through payroll deductions and matching employer payments. Until just recently … Social Security was a 6.2 % payroll deduction (which the employer must match) and Medicare was 1.45% (which the employer must match). In other words 15.3 % of every dollar in wages earned supposedly goes to fund these two programs.
Issue #2: Let’s assume that a person might work from the age of 21 to 65 … that equals 44 years. Let’s further assume a very modest $30,000 yearly average income … that’s $1,320,000 lifetime earnings. At 15.3% … there should be $201,960 in funds set aside for retirement (and medicare). But it is not quite that simple.
It is estimated that the government pays 3.29% interest on the national debt (see https://www.slate.com/articles/news_and_politics/explainer/2010/02/uncle_sam_wants_you_.html). If they can pay The Banksters 3.29% they can certainly pay U.S. Citizens 3.29%. Using an HP 12C amortization calculator and compounding the interest on payroll deductions over 44 years … your 15.3% funding/deductions should have accumulated $453,890 and not just the $201,960 mentioned above (ah, the magic of compounding).
Let us also assume that you live to the ripe old age of 85 (20 years after retirement) … that equals 240 months. Continuing to compound interest on your $453,890 … your retirement benefit should be an astounding $2,577 per month. Who do you know that is getting this much money from their Social Security retirement check? (it should be noted that Social Security and Medicare rates started lower than shown here and have increased over the years … but we also chose a very modest income figure with no pay increases over 44 years. The major component of the funds that should be available turn out to be a result of the interest rates paid and not so much from the principle itself)
Issue #3: If the government doesn’t have the money they have been entrusted with … where did it go? Well, instead of being kept in a trust fund as was originally intended these payroll deductions (and matching employer payments)went into the U.S. Treasury … and Congress has already spent the money (see https://www.bankrate.com/finance/retirement/5-little-known-facts-about-social-security-1.aspx especially page 6)
Issue #4: Did you know that while the United States is empowered to create its own money … it has actually given this power over to the Federal Reserve. Were you aware that the Federal Reserve is not part of our government it is privately owned by ... wait for it ... The Banksters? Were you aware that the Federal Reserve prints this money out of thin air … and then charges us (the taxpayers) interest on the money (you know, that stuff that didn’t exist until they printed it)? Are you aware that, in principle, the largest percentage of money collected by the IRS from Income Taxes goes to pay this interest … and very little of it goes to operate the government … which make the IRS a collection agency for The Banksters that own the Federal Reserve !!!! OUCH !!!
Issue #5: If you put $201,960 (principle) into an interest bearing account and ended up with $453,890 the difference (of $251,930) must be earned interest. But … the government not only claims they no longer have your “principle” … they don’t have the interest it should have earned either. Obviously if they didn’t pay you the interest they must have paid it to The Bankers who printed the phony “fiat” money. No wonder the government is crying poor … they spent $251,930 on interest payments from the $201,960 you gave them … meaning they had to have The Bankers print another $49,970 in fiat money just to pay the interest (an put the people of America further into debt). Clever devils ... these Banksters !!!!