Showing posts with label fairness. Show all posts
Showing posts with label fairness. Show all posts

Saturday, October 20, 2018

Millennial Economic Confusion

Green on the outside, red on the inside
Photo: Wikipedia
A social media post captured my attention. A millennial was boasting about a recent home purchase. Nothing out of the ordinary, home ownership is a good thing and people take pride in owning their own place, private property is the bedrock of capitalism and freedom. This millennial was buying in one of the country’s most expensive real estate markets.

While boasting about a “privileged” status of people who could afford to buy homes because they had inherited wealth, the millennial opined that the system is rigged. This spurious “white privilege” system somehow suppresses black people who earn incomes considerably lower than whites.

Race-baiting while flaunting expensive material possessions, millennials like to quote large income disparities between blacks and whites, forgetting that income disparities exist among whites as well and not because of any deliberate exploitation or skin color but because each individual, lucky or unlucky, made personal choices that resulted in economic success or failure.

Let’s inject some economic sense into millennials’ warped reality. Income and wealth are two different economic concepts. A person could, of course, donate part or all of yearly income and part or all of wealth to black needy families to assuage his/her “white guilt.” Nobody stopped him/her from giving away to or sharing his/her home with a needy black family for the sake of his/her perceived social injustices and “white privilege.” Cars and home donations are quite welcome and part of philanthropy.

But government should not mandate how we split acquired wealth nor should government have the right to confiscate it. I’ve experienced government confiscation of wealth, private property, and even the nationalization of the means of production. It did not end well at all. It resulted in the murder of millions of innocents and decades of totalitarian exploitation of the proletariat masses by the Communist Party leaders and apparatchiks.

This millennial was discounting millions of white and black people who have worked hard to purchase their homes without direct financial help from family. Many had accumulated wealth which they plan on leaving to their heirs.

Charity begins at home and can extend to families who made poor personal choices in life or decided to enter our country illegally, seeking welfare, Social Security, and the government protection they could never get in their countries. As hard as we may try to, we simply can’t afford to make life better for billions of needy in the world.

The argument is expressed that we could feed, house, and educate millions of poor people for what we spend on wars. The problem with this argument is that the definition of poor is quite different for various groups and populations. Another problem is that ordinary people cannot control when wars are started, the few elites in power do, and they approve expenditures for such wasteful efforts.

Life is never fair and nobody should have guarantees of an easy egalitarian existence. Success, a good income, and wealth are not rights, it is an opportunity to succeed or fail.  Just because the education system has given awards to every child for walking across a stage without tripping and participation trophies, the harsh reality of life is quite different from communist academic and progressive lobbyist rhetoric.

Bad luck and bad choices are contributors to failures, while good luck and good choices to success. Hard work and choosing wisely are also important. Saving money and studying hard are essential variables of success. Blowing everything you earn on parties and a good time every weekend are formulas for failure. Lack of personal responsibility, something no longer taught in this country, contributes greatly to the “social injustices” radical communists rail about.

Millennials in this country have become radicalized communists while in college where they joined other like-minded individuals who live high on the crony capitalist horse.  IT professionals, academics, lobbyists for non-profits, or staffing offices of influential politicians have the temerity to lecture the rest of us about fairness, equality, and social justice.

Forcing social justice and equality by law or through lobbying aggressiveness is not going to make people equal or successful because humans are born with dissimilar IQs, diverse motivation levels, higher or lower moral capacity, and different talents and abilities.

Affirmative action, quotas, and other forms of government-approved and academia-sanctioned racial discrimination do not make everyone “equal” or “diverse,” it just suppresses everyone to a lesser common denominator by lowering selection standards and by hiring those less qualified. It will be interesting to see how the Supreme Court will decide on the lawsuit brought on by Asians against Harvard for discriminatory admission scoring.

 

Monday, April 20, 2015

Cuts in Social Security, Confiscation, or Wealth Redistribution?

The Governor of New Jersey, Chris Christie, gave a speech on Tuesday, April 14, 2015, in which he proposed, among other things, raising the retirement age from 67 to 69. He stated that, “We should remember that Social Security at its core should be retirement insurance. I’m suggesting that Americans pay into the system throughout the course of their life, knowing that it will be there, if they need it, to support them in their later years, so seniors will not grow old in back-breaking poverty. But, if you are fortunate enough not to need it, you will have paid into a system that will continue to help Americans, neighbors, friends, who need it the most…. It is fair, and it is what we must continue to do. We can only do that by changing Social Security.” http://www.wsj.com/articles/christie-to-call-for-raising-age-for-social-security-cutting-benefit-for-some-seniors-1429018212

According to our government’s website, “The Social Security Act was signed by FDR on 8/14/35. Taxes were collected for the first time in January 1937 and the first one-time, lump-sum payments were made that same month. Regular ongoing monthly benefits started in January 1940.” It is important to note that it is a TAX, not an insurance premium, and it is not an insurance program.

Is this a communistic issue of “fairness” or is it an issue of out-of-control welfare and government spending? Perhaps we should remind the governor that the Social Security Act of 1935 was just a retirement program that only paid benefits to the primary worker. According to their website, “a 1939 change in the law added survivors’ benefits and benefits for the retiree’s spouse and children. In 1956 disability benefits were added….The original law contained the first national unemployment compensation program, aid to states for various health and welfare programs, and the Aid to Dependent Children program.”

My question to Governor Christie would be, before we start talking confiscation of retirement benefits, shouldn’t the law be changed by legal venues? When did Social Security suddenly become an optional insurance program for which we can select to pay premiums or opt-out? As a matter of fact, Social Security is mandatory, people are forced by law to contribute into Social Security 6.2 percent and employers also contribute 6.2 percent per employee. Furthermore, Social Security benefits are taxed again. The premise of FDR’s law was that, if nanny government did not step in, Americans were too stupid or apathetic to invest their own money to help them survive in old age. http://www.ssa.gov/history/hfaq.html

And who decides which Americans need it the most and what is the criteria? How far of a stretch will be before the smart government bureaucrats like Christie decide that your savings in the bank are not really useful to you, you must give them up to the needier and unfortunate who have made bad choices in life and wound up poor, downtrodden, and addicted to drugs. Taking it a bit further, how much of a stretch is it for the same omnipotent government to step in and decide for you that your home has too many empty bedrooms, or too much space and thus must be confiscated and occupied by poor illegal aliens who have lots of kids and are in need of space. After all, in the Marxist ideology, it is only fair and social justice to confiscate wealth and other people’s money and possessions in order to give to the community and especially to the communist party elites and apparatchiks. It has certainly happened in all the former Iron Curtain countries where everybody lost everything they owned to government confiscation, redistribution, and social engineering.

Governor Christie continued, “So, let’s ask ourselves the question, do we really believe that the wealthiest Americans need to take from younger, hard-working Americans, to receive what, for most of them, is a modest monthly Social Security check? I say no. And I propose a modest  means-test that only affects those  with non-Social Security income of over $80,000 a year and phase out Social Security payment entirely for those that have $200,000 a year in retirement income. Think about how much money you have to have.”

The argument is insulting and wrong. Who is to decide what I have to have? What if my needs change due to illness? Is $80,000 a year going to be enough? Nursing home care, in-home care, drugs, and medical care are very expensive. Inflation and economic policies have sky-rocketed the price of many goods and services. This arbitrary amount may not buy as much as it used to since the cost of living has escalated.

Social Security is a tax, it is no insurance and we pay taxes even on Social Security income. People are forced to take Medicare at 65 and pay expensive insurance plans for drugs, hospital, and doctors.

How about the Social Security lock box that has been robbed long time ago by politicians who spent our money with compunction? We were told that it is our money to have upon retirement at the age of 65. There is a reason why the Social Security Administration keeps accurate records of each individual’s contribution made throughout his/her employment life in order to determine the amount of annual benefit. That is an earned entitlement.

Go to a Social Security office in northern Virginia and it is overrun with illegal aliens who do not speak English. How long have these people, who are mostly young, have been paying into Social Security? What right do they have to draw Social Security benefits that were reserved and paid for by American citizens?
Christie makes the Marxist argument that people should draw benefits according to the slogan made popular by Karl Marx, “From each according to his ability, to each according to his need,” the German version, Jeder nach seinen Fähigkeiten, jedem nach seinen Bedürfnissen,” expressing the idea that communism will make enough goods and services that would meet and fulfill everyone’s needs.

This is outrageous in itself. Anybody who lived under communism can attest to the fact that the economy was plagued by chronic shortages and people were deprived of basics, suffered daily, lost weight, were anemic, malnourished, even starved to death. People are also familiar with the Jamestown experiment in communism when everyone worked the land collectively but received an equal share of the crop. Some worked harder, some were slackers. The colony of settlers almost starved to death. The following year, they reverted to individual plots of land and production flourished.

Marx made famous the phrase, “From each according to his ability, to each according to his need,” but he perhaps borrowed it from Louis Blanc who used it in 1839, an idea attributed to the Frenchman Etienne-Gabriel Morelly who wrote in 1755 a bizarre work, Code of Nature.
Under the heading, Sacred and Fundamental Laws that would tear out the roots of vice and of all the evils of society, Morelly wrote:

“I. Nothing in society will belong to anyone, either as a personal possession or as capital goods, except the things for which the person has immediate use, for either his needs, his pleasures, or his daily work.

II. Every citizen will be a public man, sustained by, supported by, and occupied at the public expense.

III. Every citizen will make his particular contribution to the activities of the community according to his capacity, his talent and his age; it is on this basis that his duties will be determined, in conformity with the distributive laws.” https://www.marxists.org/subject/utopian/morelly/code-nature.htm

What happens when a retiree passes on? His/her Social Security benefits revert back to the government if they are not married at the time. If a person were allowed to invest their money into private retirement funds, the money would revert back to the heirs and, even after paying inheritance tax, there will still be potential money left over.

Like Christie, we also “believe in the dignity of work,” but we must send young, able-bodied welfare recipients and illegal aliens to work for their unearned and generous benefits instead of sending them Social Security checks every month, while expecting those who paid into the system to have benefits reduced or confiscated altogether. If a well-off retiree chooses to donate his/her benefits, that is a different story. But forcing them to give up their benefits is Marxist confiscation and forced redistribution of wealth.

No matter how you look at what Governor Christie proposes in regards to entitlements, a progressive term that implies that anyone who receives any form of Social Security is entitled to it, regardless of whether they paid into Social Security or not, smacks of more wealth redistribution decided by greedy politicians who have already spent the supposed Social Security lockbox and threw away the key. If anything needs cutting or confiscating is the politicians’ power and insatiable desire to spend the taxpayers’ money.

 Copyright: Ileana Johnson 2015