Cashin' In: 8/11/12
New retirees receiving less in social security than they paid in
- Duration 19:37
- Date Aug 11, 2012
New retirees receiving less in social security than they paid in
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Getting short changed buys Social Security near retirees now putting more into Social Security they will be getting back.
At -- -- shows it's gonna get even worse with negative returns like best.
Two workers be able -- opt out of Social Security altogether while hi everybody -- sharpest on it welcomed the passionate.
I guess it doesn't explain have -- -- there is static and I make Tracy -- John might build and joining us is that our great friend -- Darcy so good to see all of you -- And -- -- it is time to let workers opt out so security good idea.
Well surely -- outfitted to begin with prime minister if they were -- stand and of course they should be allowed to opt out to mean would you want to opt out of Bernie Madoff knowing it was a fraud a knowing it would collapse knowing that you lose money.
Christian you're laughing but that's exactly what -- security is there's no seeding their personal and it is an account well whoever does not catch your name on it it's just that.
Money stolen from you now when you hope that future generations are gonna have their money stolen for you an added -- up -- an eight trillion dollar unfunded liability -- -- transition to what we had before Roosevelt created it.
A private system overcame a retirement sitting in this country.
You know what I have to say this -- legend John -- if you look at the numbers there really isn't a laughing matter to be honest with you and me right I got -- six million people on Social Security that's gonna go up to 91 million people by 2035.
With the system continuing to lose money heading for bankruptcy maybe this isn't about -- opera to those now.
That are saying forget it I don't want that.
I think people should be allowed to opt out the problem is this did not start as a Ponzi scheme it has become a Ponzi scheme the problem is in 1968 think the unified budget together which Lyndon Johnson and acted -- for -- 1969.
Word congress now has the legal right to steal the money that's going to future retirees you have a person makes 43000 dollar a year they pay in more than they take out this is eradicated poverty for the elderly this is a wonderful -- except for the fact since 1959.
Politicians have stole this money -- used it for something else.
You know Christian for the economy it's an interesting question to put out there because that money.
We'll go -- the economy.
Now that would give the best NBA economy needs right now.
-- -- not exactly Sherlund is going back to the report itself it makes a couple of assumptions that are not actually consistent with the reality that most people experience that assumes that people are gonna.
Work for forty years consecutively would no breaks making average income.
All of that money and that therefore that's the -- that's gonna exist but what happens in actuality.
People have breaks and their employment.
As we certainly know people live a lot longer than 82 in 85 so in essence the Social Security providing much greater benefit.
They're not report indicated plus it doesn't even go to talking about the disability.
Insurance -- the survivors benefits it understates what Social Security gives the people and by the way.
It's all guaranteed something that you can't get -- private.
Mark your question that even low carb -- you have serious problem that's fair points -- -- but let that be at the idea here is that should -- be able to opt out.
Now I mean we we keep talking about.
The death now that is happening is -- security why not give.
Those of us are age the younger generation the of the that the choice to get out because we just frankly -- expected to be around we retired.
Why would you opt out of something it's providing a much better benefit than you can get in the private market and the -- Isn't it.
Who -- you'll want that members say -- and to Charles point but regardless of what the numbers say that I can't find anyone.
In my generation was expecting -- security be there because to John's boy they're stealing from it and they have no interest in paying it back.
The entitlements in this it in this country are so out of control we can't of board them.
So the best thing we can do for people -- allow them to opt out take matters into their own hands because -- our generation and generations below us.
Live their lives depend on something that we long I was not going to be there will be on welfare when -- Wayne what do you make of all of that I mean for those now that needs -- -- now they are not that for those like myself.
Well you know you can talk about need need need to what it's gonna do well all of that at Christian and you talked about -- rightfully so but what is it gonna call us.
What is the ultimate cost of this.
John pointed out I woman earning 435 -- yet she's gonna put in 290000.
Dollars over this.
Whether she's steady and not it averages out and she gets back 260 -- -- doesn't make any sense as -- by the same token by the same token.
This it act was in acted at a time when life expectancy was roughly fifteen years less than it is -- the you should index ended police still life expectancy us something make it rational don't quite get a giveaway program is Joseph this is that -- -- artist.
To have to -- -- -- -- -- -- -- -- You're you're forced to be part of -- windy as you point out you don't get anything back close to what you put into the biggest thing I think you you give up is your liberty is you freedom we think about that you born into this obligation to -- future generations in hopes that.
If you -- you -- or current generations.
In hope that future generations are going to be taxed for -- benefit so it's not like the government actually has a guaranteed to Christian as you said there is no guarantee that this age has been risen the benefits have been cut there's no safety and the safety net despite.
I was -- the -- I have yeah.
I get the notion that we have to take care of our our elderly you.
I think also -- teach them how to do it on their own and it's starting with our generation that's the way to do it and look there's no parent out there.
And -- here wanna bump I know for a fact you're not telling you a little -- you know that there are gonna get so security when they retired you're not.
Yeah -- -- for them right now I know it but Chris Chris.
There's got to separate it that's a separate issue politicians who have their hands -- -- kitty -- jars separate issue from the value of a program which is serve to keep all people out of poverty in his very necessary.
In order to ensure that we don't have to will -- other -- -- old people.
You know -- -- -- -- imagine they are Christian let me respond to that though because here at the -- bigger question here is that we're not talking about those that are taking some security benefits.
Now obviously you would have to stack -- this throughout the years to make a bigger change in the system.
But at the same time all we're saying is give a choice may be just a choice.
-- you to myself to any of us here whether an -- when -- participated program that you yourself just said politicians are are bankrupting -- months.
But let's look at that choice throw someone -- out of social security and moving forward down the line the outlive their retirement savings war they retire at the point where we have a stock market crash like we did in 2008.
What are we going to do our regal it'll allow them to be poor or re not going to use our resources to make sure you're able -- assist.
Because I think we're gonna allow free choice and in this society in the probably having Chris and I -- he wanted to percent about the benefits Social Security look when a single retiree.
A 50% of -- -- -- get 90%.
Other income from Social Security.
We have a red indicated poverty under Social Security this is a wonderful program for the elderly and I don't have -- -- -- the ball back to wait a minute Jonathan.
But the problem we had this.
Have stolen from future generations and that's what is made this thing -- this game we needed overhaul.
If -- security with the company it would be declared bankrupt immediately be -- declared insolvent so there's not like they're these.
Assets that governments may be just making the wrong choice with the wrong choice is that 12% of your income is taken out and paid to current beneficiaries.
Our deal are all people poor or maybe some of them are because they've been having on his it'll come to get away from them -- it was scheme we know on paper loses money -- always good choices inherent to American ideals that would mean we -- -- -- -- it went about step out of his chair Leila.
So I just didn't make it an underlying the point John of the just made this is not a pay as you goal.
That's how you think this is say this is a pines a yes in the sense that you are paying in money.
-- not for your retirement but to pay the guys who's got it right now now.
At some point in time it's in you -- you -- they don't realize that they think they're putting money away in an account that live on it I get the benefit out that something today.
Not true and it should be explained that -- it's outrageous I think Dwyane and Jonathan agree he's right it's -- to get them.
-- back another that I don't -- to be caught up up up up up.
I think that's got some great discussion all of -- all right coming up.
Freaking out at the taxpayers' expense.
As families struggle with rising food prices kids are getting your premiums whether they're dvds or not -- -- free lunch room.
Players are digesting two way plug.
Whatever you think well.
Lawmakers looking to make it easier for convicted felons to land where five banning background checks.
-- your office -- here comes a real employment emergency.
As -- prices soar tax payers are getting whacked twice.
-- to the grocery store and again -- taxpayer funded free lunch programs.
-- -- three million people eating for free -- more than 30000 sites across America.
And what program in California even lets any kid regardless of family income chow down at no cost the tri city.
Another yourself you say the taxpayers can't eat the cost.
Anymore of this this is so typical of what's going on in the administration there's no checking no eligibility -- anyone couldn't locked in for these so called free lunches.
And just feed my three -- and you have the pick up the diamond paper my kids just because no one is asking me at the door whether or not qualify for welfare.
These -- for welfare kids feed them all you want but if you do not qualify you should be asked the door and you should be turned away.
I should be paying for free lunches and a high -- of food that's in the grocery store all the same time Wayne do you think that we should be bothered I mean these are kids got to -- the kids right did.
-- -- -- -- bothered by -- this California program as well Roland let me put it this way I think it's a good program.
It's once again in the X -- Q -- of the program.
It's like saying something about Social Security I health -- all of these things it costing us a fortune into the execution -- the abuse of the program that's bad.
And that the federal government has no way to check on it they don't do anything about it.
The schools themselves don't do anything about it.
It has to -- it has to be monitored and it has to be just like everything else so is that about your shows up but when does is give me a check target -- -- hot dog or whatever that it is.
It can't be deep continued that -- you've got to stop.
And -- it up when I mean look good program good exit a good plan always saying bad execution.
What you clinical a couple things this has been around since 1975.
So this is not -- Obama administration program secondly don't edit yeah.
-- -- -- -- -- -- -- and -- also don't do so Ani brain would you also prefer that we spent money on bureaucrats determining eligibility or providing food for -- kids.
Thirdly by -- -- who doesn't need a free lunch.
Who goes -- gets a free -- the problem is with them not with the program the fact is these programs are in communities.
Where half of the children are eligible for free and reduced -- so this is a very real need and instead of devoting money.
To determining eligibility they're devoting moneys into providing food for these poor kids.
Rip bricks and I just.
I have to chuckle because you know I didn't -- graduate college but I did learn that there is no such thing as a free lunch the everyone's blog about the -- -- the -- is real it is not free someone pays for of course.
It's tax payers and is that had a points out this isn't it it used.
Regularly who know has done more to alleviate poverty for eight Americans of any age did business globally spent 5% of our income in this country vs -- -- -- 25% of their income.
Jordan may spend 40% so we need free market -- not more entitlement and -- Department of Education -- become.
I don't know there were going to lose his -- before before the 1975.
I -- an -- -- that's another good -- Obama government officials have sought.
For decades and I don't care this thing has been around since this global war it's run up poorly look I run a charity for kids on their most days handing out the -- myself.
It comes from private enterprise.
Government cannot run any thing effectively.
This needs to be going to kids that need they need to partner was somebody like art room or somebody else -- Asking for their -- government involvement at all believe me.
But -- departed -- to mention the food is going to the right kids not to Angelina Jolie's kids that -- -- -- somebody else.
-- -- says -- a lot of children that's a great point that way you'll get something right I mean this this particular program that were citing here today is a programming California to summer program fair enough.
But this is -- state that's got dire financial problems.
And we keep pointing out the different ways that these states like California could say fix their financial problem.
Well -- that they don't -- -- -- John is right it's not a done went with private charities ideas came back from -- from -- Wyoming where.
The same kind of thing the people who run in the food program out there it's a private group the community runs it it does it very well much better in the federal government to come back to your point.
Christian way you say you know you gonna hire some more bureaucrats would you rabbi -- bureaucrats to check on this hope we could do that for the IRS whose whose movement abuses of the of the of that tax system are so jag.
Getting millions in every one of these programs in every one of these programs.
Because the federal government has no idea what they do and that he's getting -- check and refunds to people in jail depict children people are under under the age of ten years so there are.
Message does not one program you can name that is efficient.
Lee -- -- -- for a finer point on a chair over a bridge if I could.
I don't think it's just that private enterprise can do a better it's in my opinion only moral when private enterprise doesn't mean government is not -- -- send it again and again and again.
And for years and the people they don't you care about steelworkers they're -- -- Karabakh teachers don't -- -- children.
Private individuals make that happen.
-- -- -- -- -- -- -- -- -- -- you have a bad conscious in you don't care about how we spend our money.
I -- just what the bill and not give the DM about that that's the -- I don't care -- -- have a conscious or not I'm not buying you lunch you don't -- -- it and that's the bottom on this and that.
A mother of three everybody yeah apples are fifty that's just discuss some very interesting are able coming up.
On the -- you won't get away with.
Oh yes you will if you're applying for a job.
As millions of law abiding citizens look forward -- -- lawmakers trying to make it easier for convicted -- to get a job.
-- millions of law abiding citizens looking for work today one congressman from Michigan is trying to make it easier for folks with.
Criminal backgrounds to get a job.
His bill would ban employers from running a criminal background check before.
Making a job -- when you say this isn't a dangerous idea you're speaking from experience here.
Gets a very dangerous idea by the way I'm I'm not against trying to get.
Four month notes but solid cut jobs and -- making them -- useful members of the committee but it.
I know of a personal case where.
A an employer.
Found out after the fact that -- the employee had had some had a criminal record.
There and then have to notify the insurance company the insurance company says you must.
We can't carry that because this person has access to certain files and you would have to get rid of that employee are you have to drop your insurance so it's a good it's a scary point.
That's a good example you know John -- -- effect on businesses what -- is it gonna cost them if you wait that long.
For that for the background -- Yeah businesses don't have time to spend a month vetting someone and then find out they have a criminal record this -- -- -- -- he -- he is what is wrong with politics this guy from his fine arts degree at -- he's been in politics -- -- -- -- And now he's going to make regulations and rules all people like Wayne Rogers who built businesses their entire career.
They don't know what they're doing that's why there and politics and an atomic have bet somebody for a month and then they find out they've got a criminal record you've wasted that businesses found this -- terrible piece -- -- That's why didn't go into politics I don't have a criminal record how does but I'm not that clean up but Kristin let me ask you this Christian do you think did it we should be waiting that long.
That's what he wants it is the waiting -- -- here and cares about her.
Yeah yeah I'm not a -- the federal legislation but I applaud the effort because this is a serious problem 65 million people in this country have criminal histories and we do not make it possible for them to get.
Jobs and employment so that they can be self sufficient.
-- we are in effect saying is that we wanna encourage those people to either be on public assistance or be rescinded this thing go back to a life of crime.
Which we also pay for so.
While I don't agree that the federal -- is the way to go I think this should be done at the the state and local level I think the effort is serious and we ought to consider.
-- -- doesn't -- -- -- the kids coming up the ranks hey you could -- all you want no one's gonna ask I think this is crazy but does raise don't have a -- raised to forgive.
But I have a right to know what I'm for giving -- that.
-- -- -- -- -- -- I'm -- geriatric.
Today degenerate attempt -- to basically ruined the business and what makes a business successful.
Is a business person's mind they're making the right decisions to -- comes in and says no you can't.
Think like this you can't act like this -- like -- -- asking somebody to -- to run a business mother blender they don't have the tools they need to actually make Smart decisions so it's suicidal for business and it's tremendous infringement on people's right as candidates to be their decision not to get.
Have a Christian Garcia thank you for being here again -- -- they have that you are are coming up everybody.
-- -- -- -- all bark and no -- Forget money guys if you want to know where things are heading look no further than find out.
And this time pro what do I need you know for next week Tracy -- not a -- sit -- recessions -- pets less dogs and cats at home because it was -- honest I'm not can get any better people got to move to find work.
Haven't a pass on -- going to be tough man ever to go to your shelters all right -- -- film.
Spending of animals Manchester United -- -- -- this league don't -- only zinc -- hooligans and bad holes something like yeah I did get an infusion of cash -- Bob and a new CRO.
LA right there and take a look at Seagate Technology.
It's got about 4% dividend and is trading at PE just about side.
All right like that right Jonathan -- day.
-- been wrong on interest rates in the past I thought they would go up -- going down it down -- down I think -- -- -- -- -- greater rates at five week -- now and the public -- is very long corporate bonds IGS goes up when corporate corporate bonds goes down all right Jonathan was wrong what are right.
That's got rid of -- everybody thank you for being here I'll see you on Fox Business weekdays noon eastern time all right everybody.