Guest Post: Obama Jobs Plan - "Screw Future Generations"

Tyler Durden's picture

Submitted by Jim Quinn of The Burning Platform

Obama Jobs Plan - "Screw Future Generations"

Friday morning the Schuykill Expressway was jammed again due to an overturned car at Belmont Avenue. My first thought was how anyone could turn their car over at the usual 25 mph speeds on the Schuykill Expressway. My second thought was that I was damned to having to take the route from 69th Street in Upper Darby down Chestnut Street (aka The 30 Blocks of Squalor) to work. I was still steamed by Obama’s $450 billion “JOBS” plan. His new plan was touted as an infrastructure plan when it is nothing but a “screw future generations” plan. Do these politicians have no shame?

Obama and his minions will tell you that Social Security is a fantastic program. It should not be touched. They declare that it is self funding. That is a bold faced lie. The Social Security Trust Fund has a $17.5 trillion unfunded liability. This is why:

“A male average earner who retired at age 65 in 2010 paid out $345,000 in total Social Security and Medicare taxes, but will receive $417,000 in total lifetime benefits ($464,000 for a woman).

A much bigger disparity in taxes versus benefits occurs for couples. In the case of a household with only one wage earner, the taxes paid out were $345,000, but the benefits received by both parties will be $778,000. For two-earner couples where one earned the average wage and the other earned a low wage ($19,400), tax payout was $500,000, but benefits will be $800,000.

Those who retired in decades past saw much bigger returns for their payroll tax investment. But clearly this situation is not sustainable. It’s like putting all your expenses on a credit card knowing full well you don’t have the means to pay it back.” – Bankrate.com

We have 10,000 people every day turning 65 years old for the next 19 years. These people will be taking $70,000 to $150,000, on average, more out of the Social Security Trust Fund than they put in. This worked just fine when there were 16 workers contributing for every 1 retiree in 1950. It doesn’t work so well when there is only 3 workers for every 1 retiree, as there is today.

The twits that present themselves as journalists in the MSM have been foaming at the mouth over the description of Social Security as a ponzi scheme by Rick Perry. How could this man tell the truth about FDR’s beloved legacy? After trying to poke holes in Perry’s truthful assessment of this bankrupt program, the pundits declare it isn’t a ponzi scheme because Social Security isn’t voluntary, and a ponzi scheme is. These morons are right. Social Security is a ponzi scheme with a gun pointed at your head by Federal Government thugs. That is a much more accurate description.

The party that presents Social Security as a well run outstanding example of government at its finest has decided the best way to create jobs is to double down on you paying even less in payroll taxes than you did this year. We know for a fact the average person will get between 25% and 125% more than they paid into Social Security. The Obama plan last year and again this year is to drastically reduce the amount paid into the Trust fund, so you can have the privilege of consuming the same amount of food and energy at a much higher price. Brilliant plan! It is amazing how liberals and Keynesians can have such disregard and scorn for future generations who will be handed this bill with no means to pay.

The Republicans went along with the 2011 payroll tax cut of 2%. They will go along with the 3.1% payroll tax cut. You see, this is how politics works. Since the payroll tax was “temporarily” cut, whoever lets the payroll tax cut expire will be declared a tax hiker. Therefore, the “temporary” payroll tax cut will be extended indefinitely, further impoverishing future generations. Meanwhile, how many jobs did the first payroll tax cut create? How many will the extended and increased payroll tax cut create? None! Obama is using the George Bush tax rebate check method of destroying the country. Both decided to address a government spending problem by reducing revenues. This is par for the course and explains why the economy is teetering on the verge of collapse.

The Obama plan consists of $225 billion to screw future generations so we can spend today. It also includes $62 billion to pay people who aren’t employed for 99 more weeks, even though Federal Reserve studies have proven that extending unemployment keeps the unemployment rate 1% higher. Paying people for almost two years while they are not employed is somehow supposed to “create” jobs. Then we have the traditional $70 billion transfer from our Chinese lenders to Timmy Geithner and then into the pockets of state government union workers across the land. Obama needs those votes in 2012. Why should states be required to adapt their budgets to reality when their sugar daddy can keep supplying the candy?

The last chunk of change in the Obama stimulus plan will be $100 billion for some more shovel ready infrastructure jobs. This line was used to snow the American public back in January 2009 when Obama’s $800 billion porkulus bill was rammed through with no Republican votes in the House and only two RINO votes in the Senate. I’m sure you’ve benefitted greatly from the first round of shovel ready jobs. I know the $300,000 funneled to my township to double the size of a parking lot at our local park, which will be utilized on possibly 3 days per year, created a huge boom as the multiplier effect promised by Keynesians revitalized our local economy. 

As I drove down Chestnut Street through West Philadelphia on Friday I observed the result of Obama’s previous infrastructure stimulus plan. Prior to Obama’s 2009 stimulus, Chestnut Street between 69th and 39th (30 Blocks of Squalor) was pocked  with potholes and the sidewalks were crumbling, uneven and littered with trash. This entire stretch of highway was repaved with a thin layer of blacktop in the spring of 2010. Wheel chair ramps were built on every corner of these thirty blocks. Another example of government at its finest, as the Americans with Disabilities Act was only passed twenty years prior. The insanity of installing wheel chair ramps on every corner without repairing the lopsided, crumbling, trash strewn sidewalks leading to the wheel chair ramps is lost on the government drones.  

A little over one year since this fine example of Obama infrastructure spending I was able to make some revealing observations that can be applied to our country in general. I counted the number of holes that had been dug in the newly paved street as I slowly proceeded down this 30 Blocks of Squalor. I was able to do this because the City of Philadelphia government drones are incapable of properly timing the green lights to allow for a smooth flow of traffic.

In the space of 30 blocks there were 20 holes that had been dug and refilled. It seems you can make a highway appear shiny and new by putting a thin veneer of blacktop on the surface but below the street you still have rotting water pipes and decaying sewer systems. This symbolizes the thin veneer of big government solutions for America’s deeply rooted fiscal problems. Short-term Keynesian ephemeral stimulus injections are chosen over long term structural fixes. The result is the true infrastructure of this country continues to deteriorate, spring leaks and rupture at the most inopportune times.

The politicians will continue to try and give the appearance of fixing the structural problems in this country, while putting nothing but useless patches on broken systems and using hype and misinformation to sell their glossy veneer of deception as solutions. Obama has chosen to screw future generations in order to try and get re-elected in 2012. What a great American visionary leader he has proven to be.      

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Noah Vail's picture

I hate to tell you this Mr. Quinn, but we don't need to worry about future generations,  even the present ones are going to witness the end of SS before their days are out and probably much sooner. I see a zero change that my kids will ever get SS and about a 10% chance that I will.

As the economy continues to decline, tax revenues will too. We will see the deficit going from $1.5 to $2.0, $2.5 . . .  and then BANG, like Greece, the US gets cut off as the world pukes at the mere mention of a T-bill/bond, which by the way is all that is left of the so-called trust fund.

If SS lasts another five years it will be a miracle.

Construct's picture

Not that I do not agree with you. But if that is the case then why should they pay any taxes at all?

maxmad's picture

They shouldn't....  If life were fair.  Obama would come out tomorrow and declare that Social Security is a bust and bankrupt and that the government will pay back to each and every person how much they have put into the system (minus anything they have taken out) over the next 10 years, and then that's it the system will be done after that....

malikai's picture

It's not that they shouldn't. It's that they won't. I also agree. This talk of future generations paying the price misses the reality which is that we will pay the price. The bill is due now.

maxmad's picture

but SS wont even be around in 2013

Fish Gone Bad's picture

Politics is about having your cake, and eating it too.  Spend today and let someone else pay for it.  Not to admonish anyone here, but even little kids know how to be politicians.

knukles's picture

And politicians know how to be little kids, unfortunately.

maxmad's picture

Dont be too sure on that... Even RP will get rid of SS if elected.. Obama wants whatever money is left in there for bowling night.... so no, nothing left in there <tipping over the coffee can>

Chuck Walla's picture

You mean spending future taxes not yet collected. Politicians are proficient at it and the abortionist made sure the pyramid would get smaller. The unintended consquences of eugenics has caught up.

Bicycle Repairman's picture

OK sheep.  See if you can get a chant going: Ponzi ! Ponzi ! Ponzi ! Ponzi ! Ponzi ! Ponzi ! Ponzi ! Ponzi !!!!!!!!!!!

X.inf.capt's picture

or will that check have any value, after inflation and taxes....

maxmad's picture

agreed abolish SS now.. Give back what everyone has put in today, and demolitish it like number 7!

Bobbyrib's picture

Most of the Boomers wouldn't be able to retire if they declared SS bankrupt. You should check out the polls that were taken on the average amount they saved for retirement. I'm fairly young and have more saved than the median.

WestVillageIdiot's picture

Many of the boomers I know have not only saved nothing but are so far in the hole that I have no idea what they will do when they are older. 

Iriestx's picture

That fiat savings will net you a few loaves of bread when Benny and Barry are finished devaluaing the dollar.

Bobbyrib's picture

Not if you invest it properly. They do have IRA accounts where you can invest in gold coins. Sure the fees are ridiculous, but it's better than investing in stocks.

Confused's picture

It seems to me, investing in Gold coins through an IRA, defeats the purpose of investing in gold at all. 

 

Not disagreeing with your statement about PM's over stocks. 

Vendetta's picture

I agree.  I took 1/2 my 401k out some time ago out and bought physical PMs,  now up  almost 300%. 30% penalty is a small price to pay to be free of financial assclowns.

maxmad's picture

Yeah but its all in worthless dollars...just sayin..

russki standart's picture

The Fed can always print into infinity. All payments will be honored, but the income streams will buy much less. Welcome to third world reality.

LetThemEatRand's picture

Exactly.  Rick Perry (a giant tool) is correct that SS is a ponzi scheme, but he forgot the detail that the operator of the Ponzi in this case has the ability 1) to force future collections to pay for future distributions, and 2) to print to meet future distributions if for any reasons collections become insufficient.   Bernie Madoff would not be in prison if he had either ability.

Marco's picture

Also unlike in ponzi schemes the bottom of the pyramid doesn't keep growing indefinitely either ... the population is ageing, but there is a limit to the ratio of people on social security to the working population. Also government has the ability to reduce social security pay outs if necessary.

It's just like a Ponzi scheme except for the fact that it's not ... it's just a government wellfare program.

DoChenRollingBearing's picture

@ Noah

I'm not even qualified for SS (not enough quarters working for the "right people").  So good riddance.  Not my problem, I am happy that I have saved.

I have already told my kid to not expect anything from .gov.  Except to be taxed.  Nothing else.

Hulk's picture

We burned through $500 billion in a little over a month and a week...5 and 6 trillion dollar deficits are right around the corner...

Vendetta's picture

yea!  Its working, its working .... 

Bobbyrib's picture

I hate to tell you this Mr. Quinn, but we don't need to worry about future generations,  even the present ones are going to witness the end of SS before their days are out and probably much sooner. I see a zero change that my kids will ever get SS and about a 10% chance that I will.

 

I was thinking the same thing the whole time I was reading his article. He calls Social Security a Ponzi Scheme, but when the government doesn't fund the Ponzi Scheme he gets annoyed. I am a fan of any tax cut that lets me keep 2% more of my money, while weakening SS and allowing it to finally collapse. Perhaps we should fully fund SS and raise the retirement age to 70 for my generation to save our parents' generation's retirement (how much did they save in private accounts?). From the generation that speaks more and more about individual responsibility, they certainly don't save any money for their own retirement.

The only thing I agreed with was tearing apart the Porkulus Package that flushed $800B down the toilet. I didn't bother to watch the speech, because I knew it would be a series of empty promises from a BS artist. I like how the author points out that if unemployment benefits weren't extended, the unemployment rate would be an entire 1% lower. What would happen to the other people on Unemployment who couldn't get jobs after the benefits are cut after the 1% accepts those opening at McDonald's? Would we bring back Hoovervilles to an even larger extent? A better solution would be to scrutinize who receives unemployment insurance more effectively. If someone is offered a job they applied for then don't accept it, because they their UEI was extended and they would receive more "compensation" from UEI then cut those people off. Make whoever can work, work. This may prove tricky and would involve bureaucrats to think more (which is not their strong point), but in the end it is a more effective solution, IMHO.

I didn't really care for this article. I don't think a lot of thought was put into it.

 

 

 

Vendetta's picture

I agree with the first part of your comment complete however when 978,000 people apply for 50,000 job openings at McDonalds ... a thinking person might question the second part.  I have a co-worker who works his butt off after a couple of stints in Iraq and has 4 sons all over the age of 18 up to age 29, all living at home because .... the jobs are simply not there to enable them to move out.  I know him well enough to know, he wouldn't stand for them hanging at home if it wasn't the case.

MFL8240's picture

You want to limit this discussion to Social Security?

max2205's picture

Keep dreaming the fuck on, BAC and uspo may blow up but thy will TARP soc sec. Don't be stupid. Under 50? Better start saving and you'll be paying more and get money at 70-75 if you live that long

PD Quig's picture

Right on, Noah. SS payments are just going to be made out of the general fund as always--and financed via borrowing. There's no money for future generations. There's no money for CURRENT generations. 1/3 of current spending is borrowed. What the fuck difference does it make that we lower payroll taxes when we're already tapped out? It's a really stupid, specious argument.

myne's picture

SS will last right up to the day the US dollar collapses. Now that the Euro's collapsing at a much faster rate, the pressure's off the dollar. That''ll buy you another 3-4 years. Just long enough for Obama to save his reputation.

He probably figures it worked for Hoover, why not him?

Plus if it fails, he gets to laugh so very hard when everything collapses completely on the Republican's watch.

r101958's picture

“A male average earner who retired at age 65 in 2010 paid out $345,000 in total Social Security and Medicare taxes, but will receive $417,000 in total lifetime benefits ($464,000 for a woman)."

A male earner that retired at 65 in 2010 started contributing to SS in 1965 (maybe earlier). Let's just make it real easy here......how much, in today's dollars, would $345k from say 1985 (half way between 1965 and 2005)be worth? I would venture to say.....a great deal more than 417k. Plus, if that individual had just put that money into any investment in 1985 returning say a paltry 3.5% then that $345k would be worth 690k today....so, I am not sure that the average Joe is getting all that great of a deal.

 

marsdefIAnCe's picture

Right - police state & foreign interventionism are bankrupt, not SS.  Hard to call a program bankrupt that has received trillions more than paid out, and that's before adjusting to real terms.

??'s picture

What a great American visionary leader he has proven to be.

what do you expect from a country that twice elected the Bush, twice elected Clinton

 

gtb's picture

As bad as Bush proved to be, what choices did the voters have?  Gore and Kerry?  Gimme a break.  Even with the advantage of hindsight, I'd choose Bush over those two useless assholes.

malikai's picture

Law 31 Control the options: get others to play with the cards you deal.

http://en.wikipedia.org/wiki/The_48_Laws_of_Power

gtb's picture

That's helpful...especially all these years later.  How are the "Laws" working out for you?  Is everybody playing with the cards you dealt?  Didn't think so...

malikai's picture

You appear to have missed the point of my post. That is unfortunate. Try to think outside of your personal life and on a macro level.

Religion Explained's picture

You appear to be a pompous self serving fool. Try to think inside the context of this thread/article and on the specific question of electing the best candidate AVAILABLE. (Or you can elaborate on the point of your post, on second thought, don't.)

malikai's picture

You just made me lol. Thanks for that.

gtb's picture

Religion - Couldn't have said it better.  Well done.  Seems the fool is rather self absorbed and didn't understand your plainly spoken rebuttal.

SteveOoooo's picture

You are the one who does not understand.

I agree though, clearly you cannot say anything better. 

Disapointing, and LOL indeed.

defender's picture

Sigh, since you don't seem to be picking up the very relevant info that he posted, let me explain it in a little more relevant way.  You are saying that you did the best with what you had to work with.  In this instant, I tend to agree.  However, this is a straw man arguement as you can vote for anyone that your little heart desires.  What was suggested is that you should have realized that your choices were being restricted in such a way that you would be harmed by accepting either of the choices presented. You should have then worked to change this fact.

You are responsible for your own well being, as no one will go out of their way to improve your life at their detriment.  If you are going to put someone in power over you, you had better make sure that they benefit from the same things that you do.

Sgt.Sausage's picture

Woosh!

That went COMPLETELY over your head, didn't it?

Vendetta's picture

No one but globalist scum get nominated

FunkyMonkeyBoy's picture

You can't stimulate people who don't wanna work. USA = sloth nation with an entitlement attitude. I'll save my tears for the poor b**tards in the far east pulling 18 hours shifts for a $1.

DoChenRollingBearing's picture

Tough guy FunkyMonkeyBoy makes a great point here.

SRV - ES339's picture

Hope you can save a bit of the vitriol for the fat cat leaches that "really" got us into this mess!

Yeah, it's those lazy bums on welfare... such easy targets for smug, intellectually challenged know it all's...

FunkyMonkeyBoy's picture

Takes acquiescence. Evil triumphs while good men do nothing, and american sheeple have proven definitively in recently years that they are masters of doing a whole lot of nothing.