In this last interview, I begin with my last comments from the interview with President Jackson
and then begin my interview on Social Security with President Franklin D. Roosevelt.
Author: Would you call them a "den of vipers" as you did your central bank backed by the Rothschilds and other foreign owners?
Pres. Jackson (smiling): Let's just leave it at what I said, as I am much more familiar with the people that were involved with the central bank of my time, than I am with those that may control and own your central bank.
Author: Excuse me Mr. President but, I see President Franklin D. Roosevelt coming in the door. Would you be so kind as to introduce me to him as I have a question for him, too.
Pres. Jackson: Certainly, Mr. Burr.
President Roosevelt! Could you please come over here and meet my friend from 2010, Mr. Jan Burr?
Image cannot be displayed
Franklin D. Roosevelt "Democracy cannot succeed unless those who express their choice are prepared to choose wisely. The real safeguard of democracy, therefore, is education."
Pres. Roosevelt: By all means. It seems we have so few that take the time to come back in time to visit us. Hello, Mr. Burr. How may I be of service to you.
Author: Well, Mr President, I am having a little difficulty forming my question. I respect so much what you tried to do to make the nation better during the Depression but, there is one subject I really would like to know more about.
Pres. Roosevelt (chuckling): Yes, there is a lot of controversy over many of the things I did. As some of the Presidents, who joined me here in the "Hall of Past Presidents" have told me, my policies are still being debated in 2010. Feel free to ask your question.
Author: Well, it has to do with Social Security. Why did you create it so that as our population gained longevity the system would become such a burden? Or didn't you think people would live longer?
Pres. Roosevelt: Well, Mr Burr, if you would go back and read my request to Congress, you will see that whether people lived longer or not, it wouldn't have mattered.
Here is what I asked for.
In the important field of security for our old people, it seems necessary to adopt three principles: First, noncontributory old-age pensions for those who are now too old to build up their own insurance. It is, of course, clear that for perhaps 30 years to come funds will have to be provided by the States and the Federal Government to meet these pensions. Second, compulsory contributory annuities which in time will establish a self-supporting system for those now young and for future generations. Third, voluntary contributory annuities by which individual initiative can increase the annual amounts received in old age. It is proposed that the Federal Government assume one-half of the cost of the old-age pension plan, which ought ultimately to be supplanted by self-supporting annuity plans.The amount necessary at this time for the initiation of unemployment compensation, old-age security, children's aid, and the promotion of public health, as outlined in the report of the Committee on Economic Security, is approximately 0,000,000.
Author: While I think I know the reasons behind your decision to start this program, I would like to hear your reasoning in your own words, since I have this special opportunity to interview you.
Pres. Roosevelt:
The establishment of sound means toward a greater future economic security of the American people is dictated by a prudent consideration of the hazards involved in our national life. No one can guarantee this country against the dangers of future depressions but we can reduce these dangers. We can eliminate many of the factors that cause economic depressions, and we can provide the means of mitigating their results. This plan for economic security is at once a measure of prevention and a method of alleviation.We pay now for the dreadful consequence of economic insecurity - and dearly. This plan presents a more equitable and infinitely less expensive means of meeting these costs.
FDR Message to Congress on Social Security (1-17-1935)
Author: Mr. President! That is about what I thought you would say, but that is nothing like we have today. Why, your plan would have allowed workers to have a much better plan and the annuities would mean that money left in them, could have been left to their heirs.
Pres. Roosevelt: Sadly, Mr. Burr, you are right. It is nothing like what I wanted. Maybe the closest thing I have heard from Presidents that came after me was a "Thrift Saving's Plan" that is used by some instead of Social Security and there, they can leave money to their heirs. I believe I had a good system that would have served the workers of America well. Ah well! I could only do what I felt was best and maybe, for whatever reason, those who were in Congress after my term, felt they knew better. Each generation and each Congress must assume responsibility for what they do or don't do.
Author: Mr. President, I had no idea how different your plan was from what we have now. Thank you so much for clearing that up. Oh, isn't that President.........
I was about to do more interviews, but, I found myself awake and laying in my own bed. Was it a dream? It seemed so real. It seemed as if they knew exactly what was going on now in 2010. Could it have really been a dream?
Author's note:
The words of the Presidents in quotes are their actual words from the site listed below their comments. I have placed some of their comments in bold as I believe they focus on some key points they are making. I have written this as I did, to show how little has really changed. Human nature is such that the people of nations, seem to keep making the same mistakes they have made before or that other nations have made before. Some of our greatest leaders saw these reoccurring mistakes and attempted to remedy them only to see future generations "overrule" their wisdom and make the mistakes anyway.
What I learned from the Interview
First, until I knew of the actual proposal, I blamed FDR for the Ponzi financing system we have for Social Security. We also used that system for Medicare. It isn't that I have a problem with the concept of the payroll tax, as that is where the money is earned that goes for a pension of any kind. It is from those paychecks you buy insurance against a disability that prevents you from working. Whether through "private" annuities or a "public" mandatory system, it has to be funded by the money earned in the private sector.
Had we adopted the system FDR proposed (which would be funded like the "Thrift Savings Plan,", millions have), we wouldn't be in the mess we are in and had we not under-reported CPI to keep wage-inflation from keeping up with real inflation, we would see workers, on Social Security that have the buying power of the 80's.
Because Social Security payments are indexed to inflation, government statisticians suppress reported inflation, and thus their need to increase monthly SS checks, by arbitrarily eliminating from their calculations products that are rising too quickly in price. If they were adjusted for the true cost of living, today’s Social Security checks would be 70% higher and the Federal deficit would be exploding.
Financial Armageddon: Lies, Damned Lies, and Statistics
The reason that social security is in trouble is because Congress kept the Ponzi financing that evolved as the demographics changed. We have had 11 times where there were shortfalls and 22 tax increase steps, including the 54% increase under President Reagan. Each time it was a "fix" that was, instead, just another bandaid for a "Ponzi scheme. Under reporting also kept wages lower which kept payroll tax revenues lower.
I was in a public meeting with a Congressman after I had heard that Congress wanted to immigrate 60 to 100 million (during the housing bubble). I asked if they wanted the immigration to save Social Security and he agreed we did and said we need "a lot (of immigrants)." I then asked if the number they arrived at was to keep the ratio of workers to retirees at 3 to 1 and he said, "we need a lot more (immigrants)." Never did get a really clear answer.
The problem now, of course, is that we can't find jobs for those here, let alone 60 to 100 million more. In fact, we can't find jobs to cover new entrants to the workforce in spite of record numbers of workers retiring and going on disability.
The Social Security Administration had projected an increase of 315,000 applicants for the 12 months ending Sept. 30 partly because the first baby boomers -- those born right after World War II -- are starting to retire.The actual increase was higher. Agency statistics show that 2.57 million people requested benefits, up from the 2.10 million applications received during the previous 12 months.
That’s an increase of 465,000, or 47% higher than the expected rise.
Los Angeles Times: Social Security applications surge amid job losses
That was for Oct, 2009 and this year, the trend continues.
Social Security Administration officials say they have seen an extraordinary jump in applications for federal benefits. Over the past two years, officials have seen an 11 percent increase in applications for Social Security retirement benefits and a 27 percent increase in disability insurance applications – a surge officials say they have never seen before, even in previous deep recessions. Of course, not everyone qualifies for disability.Last year, applications totaled 2.6 million for retirement benefits and over 3 million for disability benefits — both representing modest increases over the previous year. The Social Security Trust Fund provides both retirement benefits and payments to disabled Americans. Each month, about 7.8 million disabled people receive a total of .3 million in disability benefits, with the average individual collecting ,064. Just over .4 million is distributed each month to 33 million retirees, an average of ,167. Some recipients collect both, with one benefit typically reduced.
The Fiscal Times: Social Security Sees Significant Growth in Benefit Applications
We have 78 million baby boomers beginning to retire and swell the ranks of retirees who get S.S. and Medicare and we are already running shortfalls. We have to borrow money from China, Russia, OPEC and other competitors to buy the bonds in the trust funds. The trust funds then can pay out the difference between payroll tax inflows and outflow to beneficiaries. (We are also required to loan the money in the new trust fund created in the health care bill, to the federal government in return for those "bonds" like we have in the trust funds for S.S. and Medicare) We will see the number of retirees, due to longevity, swell by over 30 million from the number of retirees given above, in the next 20 years to 71 million.
In the last year, we have had all those people leaving the work force that were mentioned in those quotes above and yet, still can't create enough jobs for new entrants. We are still sending jobs and business and investment dollars overseas due to these and other policies that make our businesses uncompetitive. We could go on about how Medicare is much more of a problem than Social Security but, the reasons are the same. We have to grow the workforce faster than the number of retirees by no less than 3 to 1 and even that ratio is crippling for our society and its economy.
By the way, since I mentioned the "Thrift Savings Plan," I would like to point out one thing that having an "annuity plan," like FDR requested, has that Social Security doesn't have and can't have because of how it is funded.
Order of Precedence. If you did not file a valid
Designation of Beneficiary on or before the date
of your death, your entire account will be distributed
as follows:
• To your widow or widower;
If none, to your child or children equally,
and to descendants of deceased children
by representation;*
• If none, to your parents equally or to the
surviving parent;**
• If none, to the executor or administrator
of your estate;
• If none, to your next of kin who is entitled
to your estate under the laws of the
state in which you resided at the time of
your death.
TSP Death Benefits:
How much of the money you paid in for 30-40 years to Social Security will you get to distribute to your heirs? None? Don't blame FDR for this lousy deal. Blame the Congress "we the people" elected decade after decade because we thought they could be trusted to "represent" us. Go "here" for fund performance and to see the choices participants have that are in the Thrift Savings Plan. I am not advocating this exact plan or the choices in it. I am advocating a system of funding that allows each worker to pay in for his own retirement and the ability to leave the money left in the account to his heirs when he dies.
I will submit one more article in this series that is a wrap up of what I have learned. I hope you have all learned something from our past Presidents.
Previous articles in this series
Part I - Interviewing Past Presidents
Part II - Interviewing Past Presidents
Part III - Interviewing Past Presidents
