- The Washington Times - Wednesday, January 28, 2009

ANALYSIS/OPINION:

Beneficiaries get a poor return on their FICA contributions, and that can’t be fixed without creating a radically different system.

As someone who continued working after beginning to collect Social Security, I was able to see how much my benefits increased each year for the preceding year’s additional contributions. In 2006, for example, my employer and I paid a total of $8,593 for my FICA contributions. This had the effect of increasing my future monthly benefits by a whopping $11.20. Consequently, I will only have to live to age 132 to break even.

It’s mathematically impossible to fix (Democrats sometimes call it strengthen) Social Security in a way to even pay the beneficiaries what they contributed without continuing to incur massive public debt. All Social Security operating costs, benefits and interest on the mythical trust fund are paid for by the beneficiaries, and there is simply no way to take more out of that pot than you put in. Conversely, with private investments, you earn real returns because they are used to increase our country’s ability to produce new wealth, and each investor is entitled to a fair share of that wealth.

LESTER VIA

Springfield


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