Once again, we have a program which has been ignored by both the Democrats and Republicans. We have known for years the solvency of Social Security was at risk and would be exacerbated with the retirement of the “baby boomers”. Nonetheless, nothing has been done. The time is long past due when action was needed. Whether people like it or not Social Security is an integral part of our economic system and one relied on by millions and looked upon with great expectations by millions more. It must be saved for today’s recipients and future retirees. We owe them nothing less. If another viable program is available that will provide some retirement for those already retired, as well as a promise of financial support for future recipients, we should explore it. However, until such time as such a program is a reality, Social Security is our policy and our plan.

SUGGESTED POLICIES AND PROGRAMS

1. The American Center Party would start by passing legislation to establish that the Social Security Trust Fund is not for the Democrats, not for the Republicans, not for the President and not for the Congress. It is for the people. Unfortunately, over the last few decades, the Democrats and Republicans have turned the Social Security Trust Fund into their rainy day fund and borrowed from the Fund so that, in fact, there is actually no money in the fund and it is represented by IOUs from our own government, which is paying a minimal rate of interest. This legislation recommended by the American Center Party will put a stop to that practice, which should never have started in the first place. The current debt of the Federal Government to the Social Security Trust Fund is estimated to be over $3 trillion. What would that sum generate at a more reasonable rate of interest.
2. The legislation shall prohibit the President and the Congress from borrowing from The Social Security Trust Fund, or using it to balance the budget or declare a budget surplus.
3. It is estimated the shortfall in the fund for 2012 was $187 billion. As such, the sur-tax previously set out in IV above, shall be applied to reduce the debt from the federal government. The American Center Party also recommends that the $2.8 trillion or any amount which is supposed to be in the fund and is owed the fund by the United States government, be borrowed from a willing ally and invested at the highest and safest rate available on today’s market. Such an investment, which could easily yield 5%, could produce a return of $140 billion thereby reducing the shortfall to $47 billion. Since the Dow Jones Industrial averaged approximately 9.9% from the Great Depression until the dotcom boom, imagine what return that would generate for $2.8 trillion, had the Trust Fund been so invested. Many may question the wisdom of investing by the fund in the market, but the American Center Party believes government should stand tall and lead the way in its confidence in our government and belief in our economic system. For if the government doesn’t have such faith, why should investors. There will be downturns, but the market will always rise again. As an example, the fall of the market due to the Brexit vote was a little over 900 points in the first 3 days. However, the market recouped a little over 800 points in the second 3 days. A long term example is the market crash of 2007-08. The Dow Jones was around 7000 at the beginning of 2009. Yet by the end of 2016 it was over 19,000. In the final analysis, over the long haul, our economy is strong and we should take advantage of that fact. In any event, any return will be far more than the return now being received on the government IOUs. Today, just a short time after the Brexit vote and a few years after the recent economic downturn, the Dow Jones is in excess of 24,000, its highest position ever, proving the strength and solidarity of our economy.
4. As for changes to the program, which is essential if we are to save Social Security, first, the income cap, which is presently at $107,000.00, should be removed for a period of 5 years, which will further reduce the shortfall. After 5 years, such change may be re-evaluated to see if its continuance is necessary.
5. Deleting those earning over $250,000.00 annually as recipients of Social Security benefits for a period of five years will also add to the programs stability and reduce its costs in the short term. After such time a re-evaluation should take place to determine if such restriction should be made permanent.
6. Raising the retirement age to 70 for those under 55 years of age, as recommended by some, is another possible change, but won’t impact the fund for 15 years, so it brings no immediate relief and thus is of little value at this point. This should be delayed until the other changes listed above are given a chance to work. After such time this issue should be considered, if necessary.
7. Finally, as stated previously in section IV Economy and Jobs, the tax generated by companies returning the alleged $2.5 trillion sitting overseas due to our high corporate tax rate will be used to further pay down the debt owed by the federal government to the Social Security Trust Fund.