AMERICANS WILL BE SHOCKED IF THEY EVER HEAR ABOUT THIS!

Excerpts:

Many people believe that Social Security is an “earned right.” That is, they think that because they have paid Social Security taxes, they are entitled to receive Social Security benefits. The government encourages that belief by referring to Social Security taxes as “contributions,” as in the Federal Insurance Contribution Act. However, in the 1960 case of Fleming v. Nestor, the U.S. Supreme Court ruled that workers have no legally binding contractual rights to their Social Security benefits, and that those benefits can be cut or even eliminated at any time.

And then there's this:

Helvering v. Davis (1937), the Court had ruled that Social Security was not a contributory insurance program, saying, “The proceeds of both the employee and employer taxes are to be paid into the Treasury like any other internal revenue generally, and are not earmarked in any way.”

Is There A Right To Social Security?

Rick Perry – Just another RINO?

So let’s go with his instinct and ignore his cowardice. . .

Dick McDonald - Ownership Society Institute

"We will fix the Social Security system so it will be there for our young workers..."

--Rick Perry speaking to the Iowa Credit Union League on 9/16 in Des Moines, Iowa.

This is essentially a major retraction on his “Ponzi scheme” remark at the debate last week.  The USA Today poll said 32% of the people wouldn’t vote for him because of his “Ponzi” characterization so like the politician he is he joined the Democrats and Republicans like Romney to “repair” the un-repairable rather than replace the system with private investment accounts like 15 countries have done following the lead of Chile and the advice of supply-side economist Milton Friedman.

Listen folks the only repairs on the table are a combination of raising the retirement age, means testing and reducing the rate of automatic increases in benefits.  Each is a MAJOR BENEFIT CUT and TAX INCREASE.

America what are you thinking? Are we socialists or capitalists?

In Chile which has been accumulating personal wealth for its citizens in personal investment accounts for 30 years lets 55 year-olds access special computers to decide whether to retire and what insurance annuity they want to buy with their accumulated nest egg. Our politicians are about to raise our retirement age to 75.

The American system Perry wants to fix has no nest egg accumulated for its workers. So he is just another mathematically-challenged RINO in my opinion. I pray that Sarah Palin enters the race and advocates privatization of the system like we thought Perry would do.

LET’S REVIVE THE ECONOMY NOW

Chile followed the advice of Milton Freidman’s Chicago school of economics and is presently running a 7% a year increase in GDP. And what are we running – 0%. If we ran a 7% increase our GDP would skyrocket with the addition of $1 trillion of sales and services each year. That would mean that on each day of the year including Saturdays and Sundays there would be an increase in the sales of goods and services of $2.74 billion dollars we didn’t have the day before.

Now think about this. How many jobs would be created to service an increase of sales and services of $2.74 billion dollars a day? Assuming $50,000 of sales per employee then we would add 54,800 new jobs every day 24/7 or 20 million jobs annually. Assuming $100,000 of sales per job we still would be adding 10 million jobs.

In other words privatizing Social Security in Chile was a massive job creator.

AND WHAT DO WE NEED IN THE USA TODAY?

JOBS, JOBS, JOBS.

My Rise Up America plan needs to be considered nationally. It does for the poor and middle-class what “trickle down” did for the rich and as a kicker creates millions upon millions of jobs immediately. Forget that it will create a $4 million nest egg and a $33,000 monthly retirement check for the average household in the future think about saving our economy today.

Only new investment capital creates new jobs in the private sector.  Why should we have to rely on the rich to supply that capital when the people – remember those of, by and for the people – can surely invest their payroll taxes in the economy and create their own jobs.

Can we get out of the sandbox and go back to class?

Can’t we measure up to Chile.

Come on! Let’s roll!

Dick McDonald
September 19, 2011

Does one man have the answer for America?

I emailed Al Martinez (The Daily News) twice about my friend Dick McDonald...and look what finally happened today!

Al Martinez: "Does one man have The Answer for America?"

PS: Dick has a free e-book on his website called "Make The Poor Rich and America Wealthier" that is over a hundred pages of specific details that show why his plan will save our country. (Please forward to your lists and spread the word!)

Private social security accounts: A couple who worked from 1965 to 2009 would have beat the government payout by 75%

WSJ: President Obama has already dismissed one reform that would improve Americans' financial standing: allowing workers to save and invest some of their Social Security taxes in personal accounts...

Also see Rise Up America

Healing the Nation

by Dick McDonald
Ownership Society Institute

The American people are on to politicians and they don’t like what they see. And what they see is a daily diet of talking points that are only 1% solutions at best to their 100% problems. A diet that consists of ideological issues of small versus big government, socialism versus capitalism, deficits versus surpluses, entitlements versus privatization, job losses versus job creation and a whole host of peripheral issues that aren’t of the slightest interest to average Americans.

What the average American wants is a better standard of living for himself and his family and a way to achieve the American Dream of financial independence. Unfortunately they got a Democrat who promised to fulfill those dreams but turned out to be a tax and spend socialist who can only deliver what he steals from the rich and productive elements of society. He turned out to be a one-trick pony just like all totalitarian-socialist dictators are.

So how do we heal the nation?

The Democrats claim to socially represent the underdog in America but in reality tax them unmercifully with payroll, sales, energy, property taxes and in some cases income taxes. Tax them to the point they can’t save a dime. The Republicans, on the other hand, support the rule of the jungle – survive on your own or die. Neither party has done anything significant in decades to elevate the prospects of the underclass.

The Democrats promote bigger government to impose their policies; Republicans pretend to champion small government. However, to really understand how to heal society we have to contend with the libertarians – they want no government control of any aspect of the citizen’s life. And that is the building as well as the stumbling block to crafting a solution for our national problems.

As a starting point let’s take aspects of the Democrat and Libertarian views and compromise. The Democrats want the common man to thrive (those Democrats, Socialists, Communists that are really interested in delivering the “common good”) so let’s privatize payroll taxes and give each taxpayer back the 15.3% in taxes he pays. That will satisfy the Libertarians too – it will get the government out of the individual American’s business.

However, the Democrat will rightly point out that ordinary Americans are not prepared to invest in their future and in most cases will spend all that 15.3% currently and not save a dime. Eventually they will become a ward of the state and make the privatization of their payroll taxes a useless exercise.

This is where the Libertarian will have to compromise with the Democrat and restrict the individual from spending that money during his lifetime and put it in a non-governmental trust to accumulate and compound into a sizeable nest egg for retirement. Although the taxpayer can’t use the money before retirement, it is his and no one else’s.

Now having done the “common good”(satisfying the Democrat) and freed the individual from confiscation by the state (satisfying the Libertarian) – the Republicans and their capitalism come into play. By privatizing the $1.3 trillion in annual payroll taxes and investing them in the stock market the economy will explode and send the market indexes like the DOW and the S&P 500 right through the roof.

Tens of millions of jobs will be created by the private sector.

More importantly the people will have a Congress that worked for them. The average household at today’s prices will accumulate a $4 million nest egg at retirement and $33,000 a month retirement check. Today the average American can look forward to a monthly Social Security check of $1,300 and no nest egg whatsoever.

Now there are those that say the market is too risky – “look what happened to the DOW”. It is down to 10,000 from a high of 14,142. What these critics forget is that a 40-year investment started 40 years ago with the DOW at 800. The average rate of return is approximately 10% per year for 40-year cycles since 1871. So much for “risk”

Then they will say we can’t afford to pay off everyone under the old programs. That is nonsense. Privatizing these programs will generate enormous economic activity and increase “income tax” receipts to the point the excess generated can pay off older participants within three years. Remember privatizing will immediately extinguish today’s $111 trillion of unfunded debt upon enactment.

With one national pension plan the cities, counties, states and the federal government will be free of those costs and able to survive the current bankruptcies they have created. Look – instead of a $15,000 Social Security pension the average household would be looking at a $400,000 a year pension. Even those government employees that enjoy $100,000 a year pensions would greatly benefit by privatization.

The Ownership Society Institute (OSI) has developed a complete plan, Rise Up America (RUA), to increase retirement benefits and rapidly create wealth for all Americans. You can access this plan here or type www.riseupamerica.us into your browser.

America is going transform. It is just a matter if it plans to implode in terminal socialist bankruptcy or thrive in capitalist-delivered wealth.

The Real Cost of Health Care

by Dick McDonald

The cost of keeping me alive for the last ten years has been astronomical. And who has been paying for it - the taxpayers of the United States. I am on Medicare and have run up probably $1 million in hospital and doctor charges of which Medicare paid $300,000 and the healthcare industry ate $700,000. Due to careful planning, I didn’t pay Medicare taxes most of my life. My contribution to the program was negligible.

The bill for my recent Gall Bladder surgery is a window into why (1) insurers make so little profit from covering health, (2) the entire medical industry is dysfunctional financially and (3) the problem is government’s intrusion into the health care industry.

Total charges                                                      $86,999.31

Amount paid by Medicare                                                             13,128.08)

Your Medicare discount                                                             (73,621.23)

Amount you paid                                                                             0.00

Total Amount You Owe                                          $   250.00

This was the charge for a three-day stay. I didn’t get the bill for my 7-way heart bypass surgery in 2002 but I assume it was a dozy too – my share was $200 for that one. I have Stage II diabetes; have had two cataract surgeries and assorted maladies all of which cost me about $10 a visit.

I don’t have to explain why Medicare is loved by the beneficiaries and eventually unsustainable financially. The bill clearly illustrates why seniors want to keep their benefits and many like me are getting benefits they didn’t even partially help cover.

Neither politicians nor the people are addressing how to solve this enormous entitlement problem. A precious few are trying to make the program solvent but only have temporary fixes that merely kick the can down the street to another Congress. There is a way to solve it but it is not on the table – that is privatizing the program which would enable people to afford these high-priced medical costs.

The unfunded cost of entitlements is presently $111 trillion dollars. There is no way to pay off this amount by raising taxes or cutting benefits without serious political consequences. Privatizing the program correctly could deliver the wealth necessary so that every American could afford the best medical care on the planet. It is tragic that the principle that the Founders built our country on – privatizing – should have been so demeaned that it now stands for destroying social programs like Medicare.

If you have the courage to fight the battle to revive our economy and straighten out the big government intrusion, join with us at www.riseupamerica.us to fashion the weapon that will unseat the politicians who refuse to do the right thing and work for the people.