It takes a lot to scare Generation X (born between 1965 and 1980). Alas, we grew up on movies like “Friday the 13th,” “Halloween,” and “Nightmare on Elm Street.” When we weren’t being terrified by fictional psychopaths, we were being scared to death by real-life potential predators in movies like “Jaws,” “Jaws 2” and “Cujo.”
Essentially, it takes a lot more than the inevitable insolvency of Social Security to scare us … but that issue does piss us off.
For those who think Social Security is an entitlement program, think again. It has been taken out of my personal paycheck since I was a 15-year-old on my first part-time job. I’ve spent 41 years paying into this government-mandated Ponzi scheme.
Yet, according to a recent article from 1819 News, a large number of Alabamians will experience significant cuts to their Social Security benefits as the program races toward insolvency in 2032.
Created under President Franklin Delano Roosevelt’s New Deal programs in 1935, Social Security’s goal was to provide economic security to elderly Americans and the unemployed. During the Great Depression, the poverty rate was high among senior citizens, but the average life expectancy was 58 for men and 62 for women. Today, life expectancy for both sexes is around 80 years old.
According to the Heritage Foundation, Social Security began running deficits back in 2010. Since then, Congress has done what Congress does best – nothing.
From what I can tell, the best option would be to slowly reduce Social Security benefits for future retirees and privatize these accounts. Every person should have a personal Social Security account that can be invested like a 401k rather than keep it in a big, government slush fund that can be raided at the whims of Congress. After a person’s death, these accounts could also be passed down to an individual’s children. This would be productive, potentially lucrative, and possibly create generational wealth.
Believe it or not this situation could be worse. Back in the early 1980s, President Ronald Reagan and Speaker of the House Tip O’Neill struck a bipartisan deal addressing the financial problems surrounding Social Security. Their compromise included gradual increases in retirement age and benefit adjustments. These collaborative efforts helped subvert an earlier crisis.
On an additional bipartisan note, President Bill Clinton and Speaker of the House Newt Gingrich engaged in discussions on Social Security reform, proposing the privatization of Social Security and the creation of mandatory savings accounts for each taxpayer. This would have been a huge step in the right direction, but Clinton’s second term was fraught with scandal and impeachment proceedings that hindered any productive reforms. Additionally, baby boomers didn’t have enough children to provide coverage for their Social Security benefits … but that’s a whole other article.
I’d like to know if Trump and Speaker of the House Mike Johnson (R-La.) have discussed Social Security’s fiscal dilemma. My calls to Johnson’s offices have been met with recordings. You would think that with Republicans in control, it would be easy to negotiate productive policy reforms, but who knows if they’re even tuned in right now?
As a friend observed, Gen X will probably take the hit of losing our Social Security benefits to preserve money for our children. We grew up watching Charlie Brown get the football ripped out from under him every Thanksgiving, so it feels normal to be told we’ll never receive our benefits. Being raised on hose water and neglect toughens you up.
But two things can be true at once. The rampant fraud perpetrated in states like Minnesota by Somalian immigrants, who have literally stolen taxpayer money right out from under us, has made this Gen Xer think the government can kiss my grits if they think I’m going to sacrifice 40 years of money I paid into the system.
On a positive note, acting Attorney General Todd Blanche announced charges this week against 455 defendants across 45 states for healthcare fraud schemes involving more than $6.5 billion in false claims submitted to Medicare, Medicaid, and other programs. Clawing back that money would be a step in the right direction to stabilize Social Security.
Gen X tends to ask financial planners not to factor in Social Security, but then doesn’t like how the retirement plan looks without it. We are a generation that has sought to diversify investments, yet we still feel behind. Most of us aren’t counting on these benefits, but it’s the principle of the matter that keeps us from surrendering. We were made to pay into this government debacle. The government never made the appropriate policy changes to evolve with a growing retirement population and has allowed illegal fraudsters to steal our money.
We’re a generation of complainers, not quitters. We hung on to gravity-defying merry-go-rounds, nearly killing ourselves before tucking and rolling onto dirt and rocks. We’re not relinquishing our hard-earned money that easily.
Kristin Landers is a substitute teacher and freelance writer. Landers' previous work includes serving as Communications Director for the Alabama Policy Institute and working for Citizens Against a Legalized Lottery (CALL) to defeat legalized gambling in Alabama.
The views and opinions expressed here are those of the author and do not necessarily reflect the policy or position of 1819 News. To comment, please send an email with your name and contact information to [email protected].
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