Star Parker: Social Security Reform About Principles, Not Accounting

CNN and other media outlets reported that Florida’s governor was in Florida on the day of Florida’s first campaign for Congress. Ron DeSantis supported the 2012 campaign of Florida Governor Rick Scott for Congress. “privatizing” Social Security

It is not surprising that they predict this will provide ammunition for Democrats and former President Donald Trump’s attacks, should DeSantis declare a presidential bid.

If this is true, it supports Nikki Haley’s new slogan that we need a new generation leaders.

Franklin D Roosevelt, the president who brought us Social Security was a man who spoke to the nation at his 1933 inauguration, during the dark days and depression. “The only thing we have to fear is fear itself.”

Roosevelt is praised for his leadership and courage. Roosevelt was not bold. He did the wrong thing.

The nation needs bold leadership again today. What is needed now is to reverse the damage Roosevelt did back in 1930. Many of today’s social and fiscal problems stem from Roosevelt’s 1930s actions, including his 1935 signing of Social Security.

In 1937, Helvering against Davis challenged the constitutionality of Social Security. Social Security was challenged on the grounds of violating the Constitution’s 10th Amendment. This prohibits federal government action not specifically authorized in the Constitution.

Social Security was deemed constitutional by the Supreme Court. It offered an expansive understanding of the constitution’s principles that allowed for a new interpretation. “general welfare” clause in Article 1, Section 8: “The Congress shall have Power To Lay and collect Taxes … (to) provide for the common Defence and general welfare.”

General welfare was always understood to refer to the implementation of specific authorities as enumerated by the Constitution. The congress could now do anything they wanted with general welfare.

Helvering and Social Security were the first steps to modern welfare states.

Social Security was the nation’s first. “transfer payment” program in which one taxpayer could be taxed, and the revenue could then be used to transfer to others to accomplish purposes that Congress had deemed necessary. “general welfare.”

Scott Grannis (economist/blogger) estimates that federal transfer payments account for almost two-thirds to $4 trillion annually. These payments now make up more than 20% of Americans disposable income, as opposed to 5% back in the 1950s.

You might be wrong if you still believe that Social Security can be used as an investment retirement program.

It is a welfare-state transfer program in which the taxes that workers pay now are used to make payments for those who are retired.

Soon after Social Security was passed, more than 40 people were working and paying taxes. There are now three, thanks to decreasing birth rates and increasing life spans. According to the Congressional Budget Office, Social Security revenues will be 23% less than obligations by 2034.

The welfare state idea doesn’t even have an American pedigree. Its roots lie in 19th century European socialism.

Our fiscal problems of today are not related to accounting. They are about principles. We must restore American freedom and ownership principles.

This would be an enormous boon. Social welfare programs are said to be particularly helpful for low-income Americans.

The Committee to Unleash Prosperity states that if a single person earns 45% of the national median income, and invests 10% in diversified stock/bond portfolios over a 40-year period, instead of paying Social Security taxes they could purchase an Annuity at Retirement worth $37784, as opposed to $11,923 from Social Security.

All the talk about the wealth gap in America, the Federal Reserve reports that only 34% of Black households and 24% Hispanic households own stocks, while 61% of white households have stock.

We can solve our fiscal problems by restoring American freedom and ownership principles, and we can make America healthier and more wealthy.