Lower Taxes, Smaller Government and More Liberty

By: Scott | September 03, 2013

Guest post by

Mike Clifford

Rogers, AR 72758

A debtors’ prison is a prison for people who are unable to pay their debts.

Baby Boomers are the FIRST generation to have contributed their ENTIRE working lives to both Social Security and Medicare having paid in over $12 Trillion dollars.  However, the money has been spent, EVERY penny, PLUS an additional $17 Trillion by previous generations, mainly by Tom Brokaw’s “Greatest Generation”. They were Great because they saved the world during WWII and worked industriously to support their families.  This “Greatest Generation” had little or no understanding of the unintended consequences of an unfunded economic future. They were naive about an economy built on unbridled credit, impossible entitlements and unfounded expectations that the system could never collapse. We Baby Boomers also have no understanding of this imprisoning debtor’s abyss facing our children.


According to Chris Cox and Bill Archer in the Wall Street Journal article

the unfunded payable for Social Security and Medicare is $87 Trillion dollars.  What is an unfunded payable? An unfunded payable does not have savings set aside to pay for it.  In plain English, future generations of America will be forced to pay this $87 Trillion robbing them of their earnings and lowering their standard of living.


Social Security and Medicare are funded by future generations paying the bill!  If you combine the unfunded payables with the debt, EACH American citizen owes $332,000.  Yes, EVERY man, woman and child owes $332,000 individually (Calculation: Debt of  $17 Trillion plus Unfunded Payables of $87 Trillion  = 104 Trillion. 104Trillion/313 million Americans).  We have run out of everybody’s money. The unfunded payables and the debt will continue to grow which will inevitably implode our economy and force future generations into debtors’ prison.


We, the entire population of American, all of us, have not paid enough attention to this issue. We have been too busy working and raising families. If we had paid enough attention, I believe, we would have changed course long ago.  I also believe the “Greatest Generation” would have championed changing course had they realized they were imprisoning their children and grandchildren with this crushing out of control debt. 


There are solutions without passing the debt onto our children and grandchildren.  One option is the Chilean system: each person pays into a private account they control directing investments within a wide range of investments.  In turn, these investments help grow the economy.


If the average Baby Boomer had put the contributions paid into Social Security and Medicare into a savings account that only paid 3% interest per year, the balance at age 65 would be $500,000. That is a Half of a Million Dollars.  No Debt, No Payables!! (To estimate this number, the National Average Wage index for 1987 was $33,400.  Social Security and Medicare contributions (including Company’s contribution) of 15.3% equals $425.85 monthly contribution times 3% per year times 45 years equals $486,841.90 per the compound calculator found at;


As of 2010, there were approx 72 million Baby Boomers living.  If you multiply $500,000 by 72 million you get an investment portfolio of $36 Trillion versus the government’s $104 Trillion in unfunded payables and debt.  This is the difference between giving a person a fish versus teaching the person to fish.


The majority of our economic problems stem from the concept of entitlement programs.  This is the WRONG philosophy.  We are entitled to “life, liberty and the pursuit of happiness”, nothing more.  The most important word is pursuit. 


These Entitlement programs are impoverishing the Youth of America. Let’s correct this before it is too late.  We Americans HAVE to be more responsible and must take this fight to Congress. We CAN accomplish this. Otherwise, the Youth of this country will be IMPRISONED FOREVER!!!

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