They Want Your Fuckin’ Retirement Money

George Carlin once said, “And now they’re coming for your Social Security money. They want your fuckin’ retirement money. They want it back so they can give it to their criminal friends on Wall Street. And you know something? They’ll get it. They’ll get it all from you sooner or later ’cause they own this fuckin’ place. It’s a big club and you ain’t in it.”

Social Security is often referred to as a Ponzi scheme and that is a fairly accurate assessment. Ponzi schemes tend to enrich the early participants of the scheme at the expense of the newer participants and the State, which passed the legislation mandating we all participate in this scheme, was certainly enriched while newer participants continue to get screwed harder than the last set of participants. What makes matters worse is that we all realize it. How many people in their 20s and 30s have you heard say “I don’t expect to get anything from Social Security?” Hell, I say it quite frequently. But you know who is benefitting from Social Security? The State.

Since its inception the Social Security Trust Fund has been “invested” in Treasury securities. In other words, the State pulls money from peoples’ supposed retirement accounts and lends it to itself. But its cronies have been wanting to get a piece of the action and, as George Carlin predicted, they’re going to get it.

The State has been unwilling to directly cut its cronies in on the Social Security scheme but it did throw them a bone. The bone was a tax rule that allowed money invested into a sanctioned scheme to be withdrawn from employee paychecks before taxes. This scheme, referred to as 401(k), has two major flaws from the point of view of the State’s cronies. First, it’s decentralized. There is no single mandatory 401(k) account that all employees have to invest in. Second, it is voluntary so many employees didn’t hand their money over to the State’s cronies. A lot of that is likely to change in the near future under President Clinton:

While Hillary Clinton has spent the presidential campaign saying as little as possible about her ties to Wall Street, the executive who some observers say could be her Treasury Secretary has been openly promoting a plan to give financial firms control of hundreds of billions of dollars in retirement savings. The executive is Tony James, president of the Blackstone Group.

[…]

It is a plan that proponents say could help millions of Americans — but could also enrich another constituency: the hedge fund and private equity industries that Blackstone dominates and that have donated millions to support Clinton’s presidential bid.

The proposal would require workers and employers to put a percentage of payroll into individual retirement accounts “to be invested well in pooled plans run by professional investment managers,” as James put it. In other words, individual voluntary 401(k)s would be replaced by a single national system, and much of the mandated savings would flow to Wall Street, where companies like Blackstone could earn big fees off the assets. And because of a gap in federal anti-corruption rules, there would be little to prevent the biggest investment contracts from being awarded to the biggest presidential campaign donors.

The “millions of Americans” that proponents are claiming will be helped by this change are the State’s cronies on Wall Street. Me and you? We’ll get fucked on the deal just as we’ve been getting fucked on Social Security. Instead of voluntarily opting to enter into 401(k) we’ll be forced to give money to yet another national retirement scheme. It’ll basically be Social Security II but the money will go to the State’s cronies instead of itself.

Every decree by the State exists to expropriate wealth from the populace. It’s a nice system if you’re either the king or are connected enough to the king to hold a royal title. But it really sucks for us lowly serfs.