Privatize Social Security Before It’s Too Late?
Dr. Peter Holmes has an interesting opinion about Social Security and why it should be privatized.
Dr. Peter Holmes: Good morning and welcome, and I am Dr. Peter Holmes, orthopedic surgeon, host of your program ‘Ask the Doctor’.
My guest this morning is Stephan Kiese. Dr. Kiese is a cardiovascular and a vascular, and takes care of your blood vessels. If you have any questions for Stephan or any of my other guests in the future, you have two ways to reach me. Do it through my foundation, that’s kneedfoundation.org or fax 210-696-6012.
Let’s talk about how your Social Security and Medicare benefits are decreasing and will continue to do so. Recently, a lot of you heard on the news about the Big 3 and how they are going to have a problem with their retirement benefits.
Well, here’s a letter from the Social Security Administration to a friend of mine which he gets maybe once every quarter or half a year. It says,
“Social Security is a contract between generations for decades. America has kept the promise of security for its workers and their families. Now, however, the Social Security system is facing serious financial problems, and action is needed. In 2017 we will begin paying more benefits than we collect in taxes. Without changes, the Social Security trust fund will be exhausted and there will be enough money to pay only about 78 cents on the dollar.”
This is from the government, this is the letter no. 1 that they got today.
Now folks, the difference between the Big 3 and you is that the Big 3 promised benefits, but you pay for benefits. Okay? Many of you pay into Social Security because you have no choice, and Medicare because you have no choice.
So what is going down here? Well, let’s explain. First of all, not everybody does pay into Social Security and Medicare, only two-thirds of us suckers pay into this system. One third of the people have managed to opt out. Mainly, teachers, large unions, federal employees and the like. And you drag them kicking and screaming back into the Social Security system.
But, the two thirds of us that are paying into the Social Security system have been paying in excess for years, and where did the money go? It goes into the general budget to pay for the general budget items for everybody. That is 100% of the general budget, including the one third of the people that pay no Social Security and no Medicare.
So, in my opinion, this is already happening with Medicare. Medicare was founded in the early 1960s. In the year 2004 it hit the same thing that is going to happen in 2017 for Social Security. And in my opinion, Medicare is now paying 78% of what they should be paying. You may not think so, but as doctors we know so.
Number 1: Many physicians are no longer taking Medicare, so you are getting decreased benefits.
Number 2: Many of you cannot get procedures on Medicare that you could get if you weren’t on Medicare. You can’t get in an outpatient center because they won’t pay for it. You have to go to hospitals. New rules. You’re getting decreased benefits. There’s certain things you can’t get, certain implants you cannot get. You are getting a decreased amount of Medicare, and it’s going to continue as the baby boomers get more and more and you get less and less benefits.
Why? Because not one dime of the Medicare excess was saved for 40 years. It was spent in the general budget. There is nothing. Not a zippo. You think Madoff had a scam? Think about what’s happened to this.
Bottom line is this. We still have an excess in Social Security. You need to insist that that gets privatized. Oh, bad word. But to me that means even putting it in cash, gold, anything. Because at least it’s there. You’re putting 20% of your net salary in. Get it privatized. Put it aside. Do not balance the general budget for those who are not putting into it. Those who scream against privatizing…. most of them have opted out. If you don’t privatize its going to go away. 78% is going to go to 0% within six letters. That’s my prediction.
These are my opinions. If you have any comments you have two ways to reach me. Do it through my foundation at www.kneedfoundation.org or fax 210-696-9012 to ask the doctor.
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