Sunday, February 20, 2011

How to rescue social security

How to recue social security (SS)?

Our SS system (SSS) is going broke. People are not in agreement as to how to fix it. I have a simple solution. It is based on my life long conviction (now made into a policing theory – “STATE POLICE POWERS AS A SOCIAL RESOURCE THEORY”) that: “The person who is closest to a problem is and should be the person to solve the problem.” Since retirement is a very person matter, the retiree, not the government, should take care of it. That is to observe that the retiree is the closest person to his/her retirement problem, not the US government.

How can one solve the SS problem, now in dire financial straight? More importantly, looking ahead, how can our younger generation invests and saves up for the future? For this we can learn from the Chinese. The Chinese invest in their children to secure their own future (retirement.) How can it work in the US, legally? More specifically, how can we set up a SSS based on our investment in our children?

We can set up an “Inter-generation SSS” (IGSSS) in the following way:

(1) Every US citizen will have an IGSSS account kept by the US federal government.

(2) Each time the IGSSS account holder pays money for his/her child subsistent, welfare and education the amount will be recorded in an IGSSS account book. An IGSSS account book is just like a bank savings account book. IGSSS account is your investment account for your future retirement. IGSSS account is interest bearing.

(3) The US Congress would make IGSSS laws providing for the following;

(3.1) Upon retirement (or emergency), the IGSSS account holder can draw down the account, if he/she so choose.

(3.2) An IGSSS account holder can draw upon the account if his/her son/daughter is otherwise gainfully employed/rich. If not a retiree is out of luck. (This is an incentive for parents to properly invest in their kids, such as giving them a good education and providing them with life long lessons.)

(4) IGSSS payment would be made by the US government and taken out of

sons/daughters paychecks. (The current SS Office can do this.) The US government can certainly sue to recover the IGSSS payment.

(5) A non US government option is to create a cause of action for the retiring

parents to sue their well to do children who prefer to go on a cruise instead of repaying their parents for their education.

How to save the SSS now and in between time the IGSSS is being set up? The US Congress can create a legal cause of action for parents to sue kids for their investment in their kids.

The IGSSS has much to offer our nation, starting with putting the responsibility of retirement on the shoulder of the family, not government. It also teaches people to invest in their kids and take care of their parents. There are just too many people these days who think of themselves first and last without worrying about their moral (now legal) duties of taking care of their family.

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