Social Insecurity- A Bad Investment For Black America

The most misrepresented government program in modern history is the social welfare retirement program, better known as Social Security. Originally set up as a program to care for single widows with children, it has become nothing more than the worlds largest pyramid scheme. And little do we realize, the average Black family is at the bottom of the pyramid!

A 2004 study done by the Heritage Foundation points out that because life expectancies and incomes differ for varying segments of society, so does the amount each group can expect to receive from Social Security. And what group has proven to be the biggest victim of the Social Security Scam… African Americans.

“…the most tragic examples of Social Security’s reverse-Robin Hood effect occur in congressional districts heavily populated by African-American workers. Here we see negative rates of return so high that one wonders how a hard-working young man in an inner-city neighborhood in Baltimore, New Orleans, Atlanta or New York City can ever move up the socio-economic ladder.”

For example:

“The most senior Democrat on the House Ways and Means Committee, the vociferous Charles Rangel (Harlem), and his thoughtful colleague, William Jefferson (New Orleans) , will have to defend this arrangement in spite of near-confiscatory rates of return of negative 4.5% for young male workers in their districts.”

Now this is not to say that this negative return is caused by their being Black. However, there are many factors that go into determining how much one will actually get back from Social Security. And those factors tend to work against the average African American.

Take income for example. One’s lifetime earnings (at least that portion that SSI taxes are levied against) is probably the biggest factor in determining one’s monthly SSI payment upon retirement. This tends to work against Blacks because our average lifetime income is much less than that of whites. Higher unemployment in the Black community also contributes to decreased lifetime income and thus, decreased SSI benefit levels.

Another factor that is working against Blacks has to do with retirement age. On average, Blacks are more likely to have jobs requiring physical labor. This type of work places additional stress on one’s body. Often requiring them to retire earlier or go on disability. This means that they are less likely to work until the statutory age at which one receives full SSI retirement benefits. How often have you seen a 65 year old carpenter, garbage man or welder? Not often, I’ll bet.

A similar factor that results in Blacks getting less is average life expectancy. Blacks, Black males in particular, have a much shorter life expectancy than do whites. With an average life expectancy of only 62 years old, the average Black male won’t even make it to the statutory retirement age of 65. So what happens to the money he puts into the system? You’re gonna love this!

If he is unmarried, all the money he paid into the system becomes a windfall to the government. And if he is married, his wife must choose between his SSI benefits and her own, which ever is more. You see, she cannot get both! Even if both she and her husband had been paying into the system for 40 years, she must choose the greater of the two benefit amounts and the rest is a windfall to the government spending. And that is what Democrats are fighting to protect… their spending.

For years, Democrats and Republicans have taken money from Social Security to pay for their precious pork barrel programs and have left nothing more than a worthless IOU in its place. The “Lock Box” that Democrats speak of, does not exist. It has never existed. The money you are paying in today is going to pay for those who are on SSI today, plus a few bloated government programs.

Democrats are in complete denial. But Republicans have seen the writing on the wall. As the “Baby Boomers” prepare to retire, the chickens are coming home to roost. Because there will be a dramatic increase in the number of retirees and it is anticipated that they will live much longer than their parents, it is projected that by 2042 Social Security will be bankrupt. That is why Republicans are proposing a partial privatization of Social Security. It is the best way to end this absurd practice and restore equity to the system for all Americans.

How does it end the government shell game? By creating individual lock boxes. Each worker who pays into the system will have an account that belongs to him/her. It will no longer be a part of the general fund and thus will not be available for congress to spend. No more IOUs!

How does it help Blacks? It will take the money once was unlikely to ever be seen again, and place it into lock box, so that they can pass that money on to their children. For many, this will constitute most of the wealth that they will have to pass on to future generations. Additionally, because this money will be invested it will earn far greater return what they are paying into the current failing system.

Retirement protection, wealth accumulation and forcing the government to live within its means are all byproducts of privatization. No one will be forced to pay into a system that won’t be there for them and all people would be able to retire in dignity. This will make for a stronger Social Security System and a stronger America.