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Facts Forum News, Vol. 5, No. 1, January 1956
File 026
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Facts Forum. Facts Forum News, Vol. 5, No. 1, January 1956 - File 026. 1956-01. University of Houston Libraries. University of Houston Digital Library. Web. January 23, 2020. https://digital.lib.uh.edu/collection/1352973/item/209/show/165.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Facts Forum. (1956-01). Facts Forum News, Vol. 5, No. 1, January 1956 - File 026. Facts Forum News, 1955-1956. University of Houston Libraries. Retrieved from https://digital.lib.uh.edu/collection/1352973/item/209/show/165

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Facts Forum, Facts Forum News, Vol. 5, No. 1, January 1956 - File 026, 1956-01, Facts Forum News, 1955-1956, University of Houston Libraries, accessed January 23, 2020, https://digital.lib.uh.edu/collection/1352973/item/209/show/165.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

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Title Facts Forum News, Vol. 5, No. 1, January 1956
Alternate Title Facts Forum News, Vol. V, No. 1, January 1956
Series Title Facts Forum News
Creator
  • Facts Forum
Publisher Facts Forum
Date January 1956
Language eng
Subject
  • Anti-communist movements
  • Conservatism
  • Politics and government
  • Hunt, H. L.
Place
  • Dallas, Texas
Genre
  • journals (periodicals)
Type
  • Text
Identifier AP2.F146 v. 5 1956; OCLC: 1352973
Collection
  • University of Houston Libraries
  • Facts Forum News
Rights No Copyright - United States: This item is in the public domain in the United States and may be used freely in the United States. The item may not be in the public domain under the copyright laws of other countries.
Item Description
Title File 026
Transcript SOCIAL SECURITY (Continued) 3I( question of who owes what to whom. If a private insurance company holds a government bond, tbut is an asset. It would be absurd for the company to issue and bold bonds ol its own. claiming them as an asset. lor they would also be a liability. The solvency of the Social Security fund is not affected, one way or the- other, by its holding of bonds a- evidence that the government i- indebted to itself. A governmental promise is ei promise, whether backed by a bond, or by a Soeieil Security account, or by a whole pyramid of promises, one upon another. To cancel or dc-haiv the bonds held in the Social Security fund would mil change anyone's equity in anything. I he preetnise of ei So. ieil Security pension bus value onlv because the government holds the power of taxation—not because it issues bonds or makes promises, lhe validity of Sett i il Si : unlv ; linn- againsl fulure taxpayers would not be changed if there were a thousand times us many bonds in the Sniieil Security fund as at present—or if there were no bonds in the fund eit all. THE INFLATION TAX Inasmuch as the redemption values of all government bonds, Social Security benefits, eun! other governmental promises of future delivery are contingent upon the future collection of luxe-, il iiiu-t be seen that each added bond or promise lends to weaken the financial pee-itiien of tin' government. There i- ei limit to the- tax burden which future generations will be willing and able to bear. \e tiiallv tin- mushrooming of governmental promises of future delivery is a form ol current taxation ;i method of dipping into private savings, which is commonly known us inflation. When the government sells one of its bonds, or collects the Social Security lux. it obtains a given amount of real purchasing power from individuals.The dollars with which the government eventually redeem- its promises lose purchasing power in proportion to the volume of such outstanding promises. Meanwhile, all other promises which are payable in dollars, including the dollar obligations con- tracted by individuals, also lose their purchasing power. This encourage- private spending eunl discourages saving emd priveite- ceipilul formation. Inflation is a subtle und destructive method of taxation. And the Sex i.d Security program is u part of that destruction of private- enterprise in Vmerica. The Social Security lux was initiated in 1937 at the comparatively low level of 2 per cent ol an employee's wages. the employer and the employee each to bear half of tlle amount. By January 1. 1954. the total tax bail risen lo I pel cent, which is still low in contrast with some of the prevailing corporate and persona] income tax rate-. It mav be recalled, however, lhat the early advocate- of income tetxes also scoff,,) eit the idea that such taxes could ever amount to as much as 10 per cent of a person's income. The ironic truth is tbut federal income lax rales have "progressed" upward to take as much a- '12 per cent of personal income in some instances. ULTIMATE COSTS A further truth is tbut a lax of 1 per cenl of ciirrcnl payrolls barely begins to cover the potential claims which are accumulating under the Social Security program. Presenl plans call for successive future im leases until the Social Security teix rate reaches em ultimate of (i.S pe-i icnl bv 197(1. It is likely that by 1970 there vvill be at least one person over 65 years of age for every five of those younger persons who ate sup- posed to be productively employed, I- 6.5 per cent of the wage- ,,f Um- persons ei total of 32.5 per cent of an average Wage going to be enough to keep one p,r-,eii comfortably in retirement? Or is thi- simply another of the wondrous examples of the higher mathematics of socialism ? Amateurs who cannot follow ul! of the political turns in thc 6.5 per cent path In security may find comfort in the knowledge that -nine of the professionals haven't solved tin- magic formula either. For instance, the compulsory Social Security program which Frenchmen have been trying to perfect for a good many years calls f,,r a teix amounting to 16 per cent ol payrolls. No doubt Ihey also had hoped eil one lime that tbe lax need be no higher them 6.5 per cent. Tin- Social Security features of lhe I nited State- railroad retirement system were initialed in 19:1.7 with a payroll tax of 5.5 per cent, bul bv 1952 that rate hud climbed to 12.5 per cent. I he anthracite fund pensions hud to be cut from 8100 to $50 a month, even though tbe tux-like contributions lo the fund were said to be equivalent lo more than 15 per cenl of the wage bill of the industry. Such experiences tend to arouse suspicion ol either the motives or the basic intelligence of those- who promise thai lev 1970 retircnieni security can be achieved at a cosl of no more than 6.5 per cent of payrolls. If it cannot be achieved by small groups within a na tion, and il il cannot be accompli other nations, then why should un! believe that il can be done on a in wieli- basis in tin- I nited States in or at any other time'.'' COMPULSORY SECURITY Ils proponents "hope eventual bene eell | pie- who work for el I covered bv- Soeieil Security." Thisl for ee neitioneil program compelhl*! dividual* to del what they could 1W woulel met attempt on their own 1 live. There is a certain plausibinl tin- rationale thai persons most like' be dependent in their old ece *J be obliged to help fool the bill <W the productive years of their lives.J reasoning, of course, presumes i' I ih,- responsibility of the governnt*! relieve the consequences of p°l Prom such plausibilities, indivi em- drawing th,- conclusion that! have a rigbl to retire eit age 65. ul1 further personal responsibilities earning ;i living. When one attentl follow through III'' various leunili''1 of those iiolious. In- i- bound even' to question the original premise! right that (he alleviation ol pnvcr considered a soeieil rather than -oueil responsibility? If ibis i- acj a- a general principle, then bow "' society -lop itself -hurt of i-e.nipl''1' cialization? I Compulsory Social Sei u ti I x b'n person to invest a portion "f hi*! ing- in a "business" which alreaoj u debt of more than a quarter of ;1 lieu, dollar- ami which seems detefj to operate' ell el deficit lie Stale- government. Little wondel participation is compulsory! SECURITY IS AN ATTITUD* A feeling of personal security ''" upon something more than il" guarantee of u bumloul in time "' Security i- an attitude not satisfied by em "eepiul share'' or e» em abundance of material good* sen ices. To be truly secure i~ without cause for anxiety, and th" of security stems from lhe mine individual who knows that In- h-1" hi- very besl wilh wheel w, hi- ow n. Such security i- It li I respeel for thr rights of other? i hi1 and property, a respeel upon **■ based um**- on n claim to lli" Though older persons ina\ "' well in tin- armed forces. 01 plants, mi* in lln* various olhi incidental to the support of h'r/i ment, that need not preclude ll"'1', (Continued on ' HI Page 24 Facts Forum News, /(■iiii."'!''!
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