Also in this playlist...
This transcript is automatically generated
I everybody got David -- thanks for joining us kicking off tonight today and the president made a threat.
But his threat was really an admission that his whole big government program -- fail.
We'll tell you how -- a second but first the president's threat.
I cannot guarantee that those checks go out on August 3 if we haven't resolved this issue.
Because there may simply not be the money and the coffers to do it.
Now this is meant as a threat to Republicans but it is really an admission.
That Social Security is a failure.
Politicians like Harry Reid will tell you that Social Security is just -- Social Security is a program that works.
Candidates going to be it's fully -- for the next forty years -- securities.
On how well we're not politician Social Security is not -- if it was fine it would have your money locked up in savings accounts is that supposed to.
Instead it -- -- a grab bag for politicians and bureaucrats who take from it as they please and spend on it.
What they like and then they leave bills in our lockbox.
That's why the money isn't there and that's why they -- -- raise the debt ceiling -- to keep this kind of pyramid scheme going just a little bit longer so.
How do we stop the -- once and for roll one guy who has been working a lot.
For the past couple of decades on Social Security issues.
As our next guest Peter Ferrara is author of America is ticking bankruptcy bomb and he joins us now Peter great to see -- -- that to be here are right.
The first won't what do you make of the president's threat.
But I think he is an impeachable offense because he's post acute care that laws be faithfully executed -- publish the article of the data.
In articles at Forbes recently and it Fox News -- showing that.
We have the revenues to people continue to pay the payroll tax revenues with -- debt limit is raised are not an art Social Security bonds supposed to be at least as sacred as the as the money that we -- the Germans -- the Chinese.
Yes that's right except for the B those bonds really are just internal IOUs that's -- -- been writing about for years those bonds actually are worthless and so.
They're not gonna help people to -- the pay those benefits but the point is the president about what the whole -- your bureaucracy the government of the United States has to put.
It's full faith and credit behind paying off.
Social Security recipient -- were paying off.
The Chinese who older bonds we have to also pay off Social Security recipients in the point is the payroll tax revenues continue to come in and all all other tax revenues continue to come and I publish that the numbers.
At -- -- sites which showed that there's more enough money to continue to pay the Social Security benefits isn't it ironic.
That they said for years that President Reagan if he was elected was gonna cut -- personal security.
And now with President Obama are you ready to cut -- and use your word impeachable why it -- be an impeachable -- custody Wilson he's supposed to take -- that the -- -- -- -- so if he has the revenues he supposed to -- -- street -- he's just he's just as simple -- that he's using this is a scare tactics to try to get his way to raise taxes just like he threatened to cut off -- soldiers when we -- -- government shut down the spring was another scare -- but if it is a tactic it's transparent.
I -- the law is the law the law says you have to treat these Social Security bonds the way you do with foreign bonds well that's that's why you know he needs to be held accountable not just by body is being held accountable by asking or recorded it Leonardo right here what so they need -- be -- long term fundamental reforms hurt them -- security.
A work for were why people aren't aren't.
Well the best solution would be -- working people the choice of up a personal savings and investment insurance account where they.
What have the freedom to take -- to choose take at least part of the money that they would otherwise pay in social security -- -- invested in their personal accounts like they did thirty years go in the south American nation of Chile.
Where in fact they were at -- -- with you even -- it happens much -- -- entire careers are doing more than twice the benefits that were promised.
By the old system in the same thing would result today because if you have real savings investment going into the system over your entire life.
You are much higher returns those -- even promises little it would depend on the point.
He -- years that Social Security like all the big government programs again I'm not a politician I'm not running for -- -- up.
Our efforts stand up for -- -- -- -- some politicians and without criticizing it needs a lot of criticism because.
It is broke the way politicians -- breach and there is supposedly lockbox.
To take money and throw back these worthless IOUs in of that -- parks is disgraceful.
That undermines the viability of Social Security.
Well yes it does because -- what has happened over the years is instead of seeing investing that money that there is no investment anywhere Social Security 90% of the money that came in.
Was always immediately paid out the current benefits and not -- -- off.
But even the surplus when there was a surplus.
They did say that they keep -- -- the federal government in return for these dial use that they have now.
And that money was spent as well so there's never any investment made whereas if you contrast that with a system -- -- actually save and invest.
Over entire lifetime that will be able to pay much higher benefits over a lifetime and that's why that system is when -- -- it just says some.
Thing about these big government programs when you're spending other people's money you don't account for that money as well as you do when you have some kind of personal thing -- statement book explains how to accomplish this in -- we have bill was introduced in fact I help us congressman Paul Ryan developed -- -- -- that manufactures a security.
As achieving limiting also security debt deficits.
Achieving -- sub -- Social Security without cutting benefits or raising taxes -- -- -- still on his website Alan Colmes I'm sure will tell you just a minute when he comes -- -- -- as they used -- -- -- is that -- is that is the fact that.
This is just a former privatization and if we had at all -- money wrapped up in the stock market over the past.
Three or four years we would have been killed it's a former relying on savings investments that if this tax redistribution.
I -- an article in the Wall Street Journal coauthored with bill shipment.
Which showed that that took on this argument well if we had saved and invested wee little lost -- our money and financial crisis -- -- it is an example of an average income couple.
Who start doing this personal -- 1965.
Who retire right at the end of the financial crisis how would they have done.
It shows that even if they invested all their money in the stock market they would have retired still with either 50000 dollars that would have been enough to pay the 75% more -- also security -- problem.
Is now we're talking about accountability here and how government programs are not accountable because of the factors some bigger -- in the middle between the money that's spent the money that comes in.
You think of all -- the new big government programs we have under Obama we have this new financial consumer protection agency that was -- is gonna help.
Hold and the chair up and she actually is responsible personally responsible for her own budget.
Congress can't even interfere with her laying out her own -- -- have that you have of course a whole health care bill.
Which is huge and its implications of non accountability bureaucracies are we have a lot more systems that don't work the way Social Security doesn't.
Well yes effect -- -- the book discusses that this record that Obama's already increased federal spending by 20% since he was elected in proposing a budget in February for joint twelfth.
That would increase federal spending by another 57% on top of that.
By 20/20 one we have an entitlement crisis already and what is -- first thing he does is adopt a whole new entitlement with obamacare so that is why the books called America sticking bankruptcy bomb.
Because at this point -- lit the fuse standup where Greece's Peter Ferrara stay with --
Filter by section