President Biden’s State of the Union (SOTU) address last night was outstanding. I especially enjoyed how he turned the tables on Republican hecklers who called him a liar about GOP plans to “sunset” Social Security. Phenomenal!
The “Sunset” Source
But for anyone who may question President Biden’s statement in his SOTU address, claiming some Republicans want to “sunset” Social Security & Medicare, the source is linked here. Verify it for yourself!
While serving as Chairman of the Senate Republican Campaign, Sen. Rick Scott (R-FL) published the 12-Point Rescue America Plan. In Point 6, he says, “All federal legislation sunsets in 5 years. If a law is worth keeping, Congress can pass it again.” Federal legislation includes Social Security, Medicare, veteran benefits, housing and food supplementation programs, and more!
Republicans consider many federal programs to be examples of “socialism.” And they hate socialism. If in power, do we really think the GOP would pass such programs again?
The Real Reason to “Sunset”
What’s the real reason for Republicans to “privatize” Social Security? They would earn kudos from their crony capitalist friends. If Social Security were “sunset,” for instance, it would allow bankers and financiers to privatize it, and make PRIVATE profits from the retirement savings of American citizens. Exorbitant profits, as the trust funds of earned entitlement programs currently hold billions of dollars. (That’s why it’s called “privatized,” in case you thought it referred to your cozy, private retirement account.)
The Downside to Privatized Retirement Accounts
There is a downside to privatized retirement accounts. Ask yourself:
- Can low-wage earners save for retirement on their own? Many underpaid workers cannot contribute to a 401K plan now, even if their employers offer such a benefit.
- Will privatized retirement savings be carefully, conservatively, and safely invested? Not like the U.S. Government can, whose sovereign currency is a protection from default. (It’s true! Modern Monetary Theory explains it. Click on these links to learn more: article or book.)
- What happens to privatized retirement accounts during an economic dip or crash? They lose value.
- Would privatized retirement savings serve as an insurance program? Not likely. American citizens would be giving up a “social insurance program consisting of retirement, disability and survivor benefits.”
Contact your Congressional Representatives. Tell them to work with President Joe Biden to protect and expand Social Security.