Logic Times

Do As I Say, Not As I Do

Posted by Aslan, 03/13/05, 1:31pm.  Comments (0)

Social Security should be eliminated.  The federal government has no business managing a compulsory national retirement plan (and no constitutional authority to do so).  

The standard objection to this libertarian position is that, without this social safety net, the streets would eventually become flooded with countless shortsighted retirees, impoverished by irresponsible management of past income.  Many, perhaps a majority, would simply spend that 7.5%, totally oblivious to a future of homelessness squatting beneath a highway overpass eating canned cat food.

The government protects people from themselves, from the appalling lack of fiscal discipline that is simply human nature.  Without Social Security, we would desperately need responsible savings habits.  This we won’t see.  What we are likely to see is:

• Money that should be earmarked for retirement will be spent on things that interest people now.  Without government compulsion, people will spend money on what they want today, not discipline themselves to benefit tomorrow.

• When some money is occasionally set aside for retirement, it will be routinely raided for current needs.  And the definition of a "current need" is flexible, is it not?  A new car.  A new HDTV.

• Admittedly some Americans are savvy investors, but most of the great unwashed – Wal-Mart shoppers and NASCAR fans – would be clueless money managers.  It is likely that these primitive investors would be unable to generate evan as little as two percent return on their money, resulting in a vastly underfunded retirement.

This is why the government needs to shield the people from their own lack of discipline.  Look how Social Security manages the dangers described above:

• The government has the discipline to save for tomorrow and not spend money  on the demands of today.  {Truth: the government only spends and never saves.}

• The government never raids money set aside for retirement.  {Truth: the government has raided 100% of money earmarked for retirement.}

• The government will be able to maximize return on investment.  At the very least, the government can guarantee you a rate of return equivalent to index funds. {Truth: Social Security’s adjusted average rate of return is an appalling 1.23%.}

So, to avoid potentially of bad management and weak fiscal discipline of citizens, we have unconstitutionally seized income and turned it over to the worse management and weaker fiscal discipline of the government.  Great plan, liberals.

Are you not reminded of that mother who, with clouds of smoke hanging over the kitchen table and a cigarette in hand, yells at her children to never smoke?  If challenged, she says, "Do as I say, not as I do!"

Copyright ©  2005 Dan Hallagan. All Rights Reserved.