Why Social Security Is The Biggest Scam In US History
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- เผยแพร่เมื่อ 28 พ.ค. 2020
- Since 1985, the Social Security Board of Trustees has been warning us that Social Security will not be able to pay back all of its beneficiaries when the baby boomers retire. However, for decades, their warnings have largely been ignored as Social Security was profitable. But, 2019 was the first year that Social Security paid out more than it took in and this deficit is only expected to get worse over the next few decades and might result in social security benefit cuts and/or increased social security taxes. More than struggling to pay out its beneficiaries, Social Security imposes 12.4% taxes on everyone regardless of whether or not they want to participate. This is especially a burden to minimum wage workers and low-income families. And even if contributors get back their investment, which is unlikely, they would have lost hundreds of thousands of dollars to inflation and millions in lost potential. This video explains the various downfalls of Social Security and why Social Security isn’t as beneficial as many people perceive.
Resources: docs.google.com/document/d/1f...
Disclaimer:
This video is not a solicitation or personal financial advice. All investing involves risk. Please do your own research.
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It is called a ponzi scam
You know society has a serious problem when a video like this gets 14 thousand views and Cardi B's WAP gets 487 million views.
You don't like WAP ?
@@xavierclayton9990 I think it's trash. Just like her.
Yup.
Education system has failed this country, you can graduate with an MBA and not know a damb thing about money, compounding intrest, the federal mobster reserve or even your basic constutional rites as a citizen, to what was once the greatest country in the world.
As a black man, hearing children sing that song makes me sick. Our generations from the 80s through early 2000s destroyed the progress that was made by generations before. @@xavierclayton9990
I have been working for almost 20 years, and I qualified for maximum benefits a year ago. I stopped working for a year to be at home with my daughter. I just checked the my social security website, it's now saying my benefit payout will be ONE THIRD of what it was a year ago. So if I decided not to work from now until retirement all of that money I paid in for 20 years basically dissapears. What a crock.
It doesn’t disappear. Benefits are calculated on your highest 35 years of FICA taxed employment. So, If you stop working at 20 years, you have 15 years with zero income. This means instead of projecting your last year of income as the income for the next 15 years, at zero your benefits crash. Go back to the SSA website and project income for future years and see what happens to benefits.
right wing propaganda......EXPAND SOCIAL SECURITY.
@@pauljohnson9317 Yes keep the ponzi scheme going, let's make it worse when it finally crashes
@@pauljohnson9317 no. It’s not a sustainable system.
Is that why Social Security is failing in every country not just 🇺🇸 America?
Right from the 1st sentence in this video, you can see the misuse and manipulation of language. "He hoped that he could OFFER millions of elderly retirees a safety net." 1. Roosevelt skimmed the top of everyone's pay check... this is not an entitlement, this is our money being taken from what we earned and (you can insert whatever word you like here... held, invested, spent, wasted) for all of our working lives, and giving 70% back, at best. That is theft. My wife died before she reached retirement age. She will never see the hundreds of thousands she had taken from her over her lifetime.
Im so sorry for your wifes' passing. Heartbreaking for sure.
social security: the government telling you that you arent trustworthy enough with your own hard-earned money to save it for yourself in the future, so instead they will force you to let big brother government save your own money for you against you will then once youre old enough to collect you get next to nothing
SS started in the Depression when people lost everything they had invested in Wall St or banks.
No is to protect people who don't understand what Social Security actually covers.
You conveniently missed the part about social security disability and Social Security survivors benefits.
@@johngill2853 yea and? i dont want that i just want my money that i earned so i can do with it what i want
@@YousAHunter good luck on that happening
@@johngill2853 and now maybe you can finally see the point after all: this is fascism and u support it xD good job
I am just seeing this video for the first time. It's really disturbing that a video like this has just 14k views after 2 years. We need more of these.
Congress can print and spend trillions every year, but suddenly when it comes to social security it has to be balanced?
Yes.
Lol 😂
LOL
Goes to show you their priorities.
To be accurate, Congress doesn't print money, the privately owned central bank does. It makes it's own policies.
The government should never have been allowed to put their hand into it
Government stole from the fund
And exactly what would you do with the trust fund? Burry it under the White House.
Without the interest from the trust fund we would already be in trouble
It was created to allow the government to do just that.
Search >> Jural Assembly Handbook. FDR did far worse things to our country and its people during his presidency. Social security is just one part it. It goes much deeper.
All areas in our Govt are a huge PONZI SCAM. Watch Mike Malone 'Hidden Secrets of Money' series. It will enlighten you and anger you at the same time
We should have the freedom to opt out social security and instead have the 12.4% of our earnings be direct deposited into a tax free retirement account. That would give us all the opportunity to easily retire as millionaires. We should also be able to leave that money to our family members when we pass. Of course that would make too much sense, we cannot have people being financially independent, they need us broke and dependent on them to maintain their power.
yes johnsmith, also they need our money deposited to the Fed. Govt. so they can spend it on other stuff.
I’m studying finance and it is the definition of a Ponzi scheme
Nope, It is like any insurance policy that needs to be adjusted. And are you saying that this is a purposeful fraud, which is part of the definition?
Social Security is NOT "like" insurance! Insurance is a contract. Insurance is when an individual pays a certain amount of money to an insurance company and that company then has to put that money in reserves and makes money on the interest of the money. However, the insurance company is obligated to pay the individual based on the rules on the contract. Social Security doesn't work like that. There is no contract. The Government CANNOT be in the Insurance business. The money that you pay into Social Security goes into the General Fund. Your payments become IOU's where you build up credits. However, your money is gone. If people stop volunteering, then there is no money for the government to pay you because that money is long gone. That is why Social Security is indeed a Ponzi Scheme.
you must've failed finance class then
It's slavery.
IMO Social security for now should be optionable not forced
That’s exactly what I think, people who want to participate can, but it shouldn’t be forced.
@@LogicallyAnswered I would much rather invest in a Roth or a 401K so that when I die my money doesn't just disappear. At least with my own retirement plan my kids can receive my money, rather than getting scammed out of it.
Well, your wish is Granted! Social Security is indeed 100% voluntary for Americans! There is no law requiring Americans to have a Social Security Number! There never has been! It's one of the governments best kept secrets! Even Social Security admits that Americans are not required to have or use a SSN! This should be front page news!
home.hiwaay.net/~becraft/ScottSSNLetter.pdf
@@freenow77 pretty sure you need to be Amish to not do social security-- something about it being a form of insurance
@@hippocleides7105 did you read the letter from Social Security from the link I just posted? Social Security admits that participation in Social Security is Voluntary!! You don't need to be Amish to not participate in Social Security! The ONLY way to participate in Social Security is by having a Social Security Number, and the only way to get a Social Security Number is to APPLY for one! The fact that you have to apply for the SSN is a clear indication that it is voluntary to have one in the first place. Social Security is, and always has been voluntary for Americans.
It's 2022. You can open a Roth IRA and invest in cheap ETFs like VOO or VTI within minutes. You can also opt in your employer's 401k if they're offering one. We don't need to waste taxpayer money on Social Security anymore.
I agree , and yet, you don't get the choice to not have SS taken out of your paycheck. You still have to pay that.
How about the disability and survivor's benefits?
What happens to those people who don't open a retirement account?
same thing that happened pre 1935 @@johngill2853
The old folks did not have the luxury of opening a Roth IRA, therefore it must be paid out till the last Boomer pass's away.
This goes all the way back to the new deal by FDR which has screwed the people. Being government dependent when you retire. Instead of having a different mindest, investing their money so they can retire happily.
Work under the table in the parallel economy & get paid in Monero if you wanna get rich, the standard economy is broken, & taxation is theft. Just pay no taxes.
Taxation it's not theft it is extortion because we know who's taking the money
How are we supposed to find employers willing to pay us in Monero
💯
People are living longer and the government expanded the definition of a disability and on top of that people who have not paid into the program are getting it.
Key point in the last bit. Disgusting leeches mooching off of the hundreds of thousands that they STOLE from you.
As soon as I get my Social Security benefits I'm going back to work
Agree. My lawyer told me the same thing 16 years ago.
This is good solid content.
Intriguing video thanks!
I completely agree, your amazing bro.
So, you're telling me India's provident fund and national pension scheme organisation are doing better than US counter part. These grow @ 8.5% and 10% annually with 4-6% inflation.
Most governments run better than the US.
the government should roll all contrbutions into a roth and cancel the program. Benjamin Franklin once said: "Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety."
Goverment should get out of heathcare and only require all employers to pay into a match fund so people can retire.
Here's an idea, instead of giving me a "stimulus check" how's about you give me ALL of the money I have paid into socicial security (and the interest) and let me do with it what I want.
They would never do that. The us govt is corrupt beyond belief
Sorry thats going in for the 1.9 trillion dollars tax cuts for the richest and 1trillion in us defence budget
Here's an idea: you will die in poverty when elderly.
what is this, capitalism? Hahaha you'll have an IRS agent at your door tomorrow at 7, sir. See you then.
Social Security is insurance you were covered for disability and survivors benefits all that time? It's like kind of life insurance company when you didn't die you want your premiums back.
And if you die your spouse gets a lump sum check of $255 and the government keeps the money you didn’t collect in the program. You literally could fund hundreds of thousands of dollars and no one in your family could get any of it. They only get the greater of the two benefits and the rest is forfeited. Correct me if I’m wrong. I certainly hope I am. I’d rather but that $300k in a mattress so at least my dependents get it.
The funds stay in the SS Trust Fund for others. It is essentially an insurance program. If you have a survivor, they will get it that benefit.
@@SandfordSmythe define “others.” Is others the person’s beneficiaries or is others just everyone else in America.
@@softdev1 I think you realize that the SS Fund is for those who are eligible
@@softdev1 Others are folks currently on SS and for those recipients in the future.
They lied to us..... so sad.... what is God going to do about that😡🤬😡🤬😡🤬😡🤬😡🤬😡🤬😡
I feel like the best option to resolve. The issue of Social Security is to begin a slow transition off of the system, so that it fades out over the next 50 years. You would need to do some major budget cuts in order to get the government in south operating on a round $1 trillion at most so that you have a large excess of revenue that can largely go towards paying off the national debt. However, once you have reduced the national budget, so that the $4 trillion coming in as revenue is mostly excess, then you can start using some of that access to support Social Security over the next 50 years. That then allows you to change the system of payroll taxes to instead go towards private retirement investments for workers, which would be based upon the complete decisions of those individuals. This with us illuminate Social Security as a program, while still providing the payout to those who were compelled to pay into the system their entire lives with the money that they were promised. It also would set up the working generation to have better retirement by taking the 12.4% of their check and putting it towards real retirement savings. I would even be in favor of making it a compulsory investment in retirement, but making it to where the worker has complete control over which retirement plan they invested at 12.4%.
The government is allowed to take not borrow from S/S but we the people have to pay it back.Bahahahaha.
Who elected those people
That's how all of the government debt is handled.
@@SandfordSmytheSpot on Saanford. All of Govt is a huge Ponzi scheme.
FDR was the worst thing that ever happened to this country.
You forgot to mention one very important aspect of Social Security. Social Security is 100% Voluntary for Americans! There is NO LAW requiring American citizens to have or use a Social Security Number! If you want to participate in Social Security, then you must apply for a SSN and and use the number and pay into the Social Security system. However, it is totally voluntary for Americans to get a SSN! This is why Social Security is a Ponzi Scheme! The system is dependent on Americans to volunteer. However, if Americans stop volunteering, then the system would collapse because the money that you paid into Social Security has ALREADY been spent by the US Government!
So is income tax as well
ss is mandatory for most citizens, depending on state law.
@@DrSchor What states have mandatory ss laws? Pretty sure this isnt true
@@DrSchor what are you talking about? Your comment doesn't make any sense. Social Security is a FEDERAL program! States cannot make laws making participation in Social Security mandatory for Americans. Social Security is a federal issue. And Social Security numbers are indeed 100% Voluntary for Americans! Here is a link from Social Security ADMITTING that Social Security is Voluntary! home.hiwaay.net/~becraft/ScottSSNLetter.pdf
This is true, and so would all our infrastructure and the power grid and everything we already depend on and have depended on since birth. Doesn't sound too good to me.
I been getting low ssi for years 😮, when need more people like that in the world ❤❤💜♏️
Smells like a pyramid
How CAN we save?
Perhaps I’m missing something here, but when plugging 60k in with no increase ever (meaning 60k at 22 and 60k every year until the family was 62) for the 40 years, you would have been taxed a little under 300k as you stated at 12.4%. Now when plugging those numbers, 60k for 40 years with no increase in a ss calculator and while assuming ss will still be around, benefits expected are roughly 33k/year. If you live 10 years you’ve already made back what you put in and every year thereafter is profit.
I won’t say it’s multiple millions of dollars, but it isn’t a terrible investment. Assuming the person lives until 80 it’s nearly 600k profit. This assumes no gain or loss of income.
Please note I’m not arguing, but I’m not sure I buy the idea that it’s a loss. Simply put, you shouldn’t be relying on the government to take care of you and your family.
You don't take any factors into account in your math lol, inflation, SS paying out 70% by 2032, suppressed wages by companies, a laundry list of stuff, your math is also wrong completely, it averages a 35 year work history and takes thar average number you made and pays out by that, so what if a person makes 40k their whole life? If I took that right now and retired ( dependant on age) I would get 1577 a month, x10 years is 189k lol, another 10 after that would get you 387k, to bad most people don't live that long and many want to retire earlier than 70 where you get maximum benefits, who knows inflation in let's say 2060 when a current 30 year old will retire, SS will be down to paying out probably 50% or less of current benefits especially as young people choose not to have children.
@@alexcobert you’re absolutely correct. I did not account for those factors. I also didn’t account for annual raises, potential job swaps for more money etc. I just took a very simple scenario and was wondering how it became a loss.
All that being said, I appreciate the insight, and while it is possible that ss gets cut to 70% (note that I won’t be drawing any anywhere near that time so I’ll have a much better idea if/when that occurs). I believe I was also trying to use the numbers they used to keep it simple, but I could be wrong on that as I offered that question awhile ago.
That being said, ss was never meant to be the government covering you. It’s just a supplement. Yes I know many only have that, because life happens. I honestly wouldn’t be surprised to see them raise full retirement to 70 before I can. Either way, I appreciate the thoughts and I hope none of this came out as argumentative.
So would you like to see SS be reformed or it abolished (I agree with you btw)
Abolished
Reformed after the last Boomer dies.
Social security does not pay out more than it takes in.... are you high?
The Amish and Mennonite people have an exemption from social security
It was never the right thing to do.
Just F*cking raise Social Security eligible age up to ABOVE Average Life Expectancy just like Franklin Delano Roosevelt did in 1934! This sh*t will blowing up bigger than Big Bang when US have more retirees than young people
FDR did no such thing. You need to refer to the life expectancy of workers.
They only go back the last three years of where you work
No they don't. It's based on your 35 best years
So how do we get paid back if our generation isn't having kids 🤔? We need at least 3 kids per person know at least to collect so ......
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Social Security is insurance against death disability and old age.
And yes people get more than they put in. Start with the first person who collected Social Security.
It's insurance it's pooled risk
You would be better off putting your money into a bank than putting it into social security
@@thepope2412 in a bank?
Even for someone who died with young kids got the survivors check?
Even for someone who became disabled young and got that SSDI check for a long time?
Even for someone who lives to say 97?
@@johngill2853 If you die you have much more say where you money that you own goes.
The average return on social securtiy for regular people is close to zero, negative for many. Virtually no say in the amount of money you can take out from it.
@@thepope2412 as with all insurance if you die it's pretty useless except for maybe life insurance. What happened to your car insurance payments if you die?
The average person? Exactly what is the average person.
Social Security now that the trust fund is not covering payments basically pays everything out but I believe a 2% administration fee. It's pretty much equal between people who get more and less
I hope the Social Security Administration has reinsurance.
Please give me all the money I contributed back to me. I will then invest it in an S&P 500 mutual fund. Returns will be much greater. Thank you.
You never contributed. The big corp government took your money like they been taking everything else due to society allowing it
It's your first credit card
Hmmm... 🤔 💳
The fix is just keep raising the age of retirement. Everyone will die before the ever get. Better wake up America.
Welcome to the libertarian club!
While this video does have logical and compelling argument, humans don't work that way.
Some people are procrastinators and don't save like they should. Some people tell themselves they won't live to retirement age. Some people's financial lives are just stretched beyond their means and have no extra money to set aside money. Some folks aren't sophisticated enough to figure out more complicated investing tools.
Currently, nearly 40% of Americans rely in Social Security to supply 50% of their retirement income.
Nearly 14% of Americans rely in Social Security to supply 90% of their retirement income.
Sure, saving with other instruments will bring about better returns, but there just too many Americans who don't work that way.
Now, you're going to ask: "Why do I have to lose money because these people don't save on their own?"
Well, social security has been around long enough that it is a given. It is an expectation, and Americans, by a large number, want to keep it -- whether it is the smartest move or not.
The other thing you have to consider is that Social Security and Medicare are linked and, I can tell you, Americans love Medicare. Plus, you're also ignoring SSDI.
Overall, your argument is somewhat over simplified, and only focuses on Social security as a pseudo-retirement account and, really, it is so much more.
(BTW, I have some social security, but the vast majority of my retirement money is a 401K.)
Yes. You've encapsulated ideas well. Thanks!
All tools needed to supply an income in retirement should be taught in school from 4th grade on. That way, as you say we can all be "sophisticated enough to use complicated investing tools". lol. The part about education I meant seriously. The sarcastic remark I meant as well but was merely pointing out your arrogance. In all fairness some of your post was spot on.
There are SO many things wrong with this video. Incredibly biased information.
I enjoy the video but you sound like you're on the verge of passing out like you're struggling to get your words out
The Government needs to put the younger Generation to work so they can Pay into our Social Security. During Cov-19 we lost alot of elderly people during the Pandemic.
So Sad, but Social Security should have Plenty of money to pay out us soon to be retiree's.
You forgot the inflation adjustments went up and people were unemployed during COVID so contributions went down
The government needs to put the younger generation to work lmfao wow. I'll die B4 I let any government put me into slavery to fund their or your lifestyles 😂😆😅😭🤣
Entitled boomer
Social Security also provides disability and survivors benefits to those who need it. Hardly a scam.
This guy doesn’t know anything about Social Security. He just wants to engage in another predictable conservative rant, while also recycling the same tired conservative talking points, in order to paint Social Security as an inept government institution, when its the exact opposite.
Social Security isn’t perfect by any means and does come with its problems, but it’s nowhere close to what this guy and his ill informed/extreme conservative buddies make it out to be in “content” like this.
It’s cute to see this conservative hamstringing and half-assing “statistics”, while also omitting other facts about Social Security that would tear up the narrative he so desperately is trying to convey lol.
Lmao you didn’t say anything
@@RonHeartt What you mean to say is I didn’t say anything that you like. Total shocker lol
You’re probably the type of person that likes to be spoon fed the same conservative narratives over and over again that you can’t get enough of apparently.
Just because a video says things that you like and agree with doesn’t make what they say credible or truthful, but I guess you just blindly accept any narrative that fits nicely into your pre-established beliefs like a good little conservative lol
@@Chrisalot I am a conservative. I am a bird. I am a plane. Dude, what is your real argument against the video? Like I said before your not saying jack shit. Not once did you convey your argument... Give facts as to how he is wrong or stfu lmao. You must use TH-cam as a practice ring for your bum ass political debates.
@@RonHeartt Again, you mean to say you’ll only accept whatever talking points you like and disregard whatever you don’t like even it is true and backed up by I don’t know… the actual Social Security Administration that is required to disclose how they use tax payer money and project how it’ll actually be used and allocated in the future?
And let me guess, if it doesn’t vibe well with your beliefs then it must be “fake news” right?
Always so gullible and blindly trusting whatever sources make you feel warm and fuzzy inside about your own beliefs I still see lol
I gotta remember conservatives like you have a short attention span and don’t have the capacity to think beyond anything outside that fragile little bubble you guys call an ideology.
Don’t worry though, the actual adults will take care of things, so I wouldn’t worry too much about it if I were you kiddo lol
Now, go be a good little conservative and go find some other random obscure thing to be outraged about that you also have no rational basis for as per usual lol
@@Chrisalot Still no facts? Peace to you.
If anyone with a brain 🧠 just listened to this guy I am SORRY. 😂
I am not gonna believe or listen to a guy who doesn't even sound American