What is the ladder out of poverty?

March 13, 2024

Poverty is isolated in the private sector. Public-sector workers’ salaries are almost twice that of private-sector workers, and their pensions are enormous. This is not meant to begrudge public workers, but they would do well to sympathize with their private-sector brethren, since about 85% percent of their pension money is paid by private-sector workers and their employers. The fiscal health of public pensions is dependent upon wealth of the private sector. Get it through your thick skull once and for all.

So what is the ladder out of poverty? The DJIA of equities on January 1, 1975 was 632. Nearly 50 years later, that 632 had grown to 38,000

What if we had added an ever-increasing investment, each year, in addition to $632? What if we and our employer added, each year, our 15.3-percent Social Security–Medicare tax into our own private equity fund? The compound savings is staggering.

Had a low-income worker with a lifetime-average taxable income of only $8.10 per hour paid the tax into his own equity fund that tracked with the Dow, and left it unattended, he would have retired with over $1,000,000

The worker can leave the money in an equity fund and forget about it. Note that the stock market gains include the 2008 financial crisis correction.

Low-income workers would retire as millionaires. Not only would privatized retirement accounts mitigate poverty, but they would nearly eliminate it.

Just for the record, our generational wealth transfer disintegrates because of Social Security. Privatizing our retirement funds will reverse this poverty-producing system.

So what is really happening today?

Well let me share with you one blatant fact. The Social Security Administration is taxing Peter to pay Paul. Critics are correct: Social Security is nothing but a huge Ponzi scheme. Your account balance drops to zero every year, and nothing is invested.

Social Security basically spends workers’ savings, then locks them into or near poverty when they retire. In fact, most Baby-Boomers must work until they die because of Social Security. Social Security is not saving us from poverty. It is causing poverty.

Efforts to reform Social Security with private accounts have been stymied for years by Democrats, who have demagogued the issue. Still voting Democrat? Keep witnessing your slavery.

So what is the biggest challenge?

Well, Governments do not want independent central banks because they prefer to increase deficits and control the economy at the expense of citizens’ savings and wages, believing it is for their own good. Making you poorer also makes you vulnerable and dependent on an ever-increasing state that promises free wealth and freedom but delivers poverty and repression.

Time to wake up and realize how you have being played into being poor and stupid for the last 50 years

Share your thoughts….

Financial Policy Council
Blackhawk Partners, Inc.
Brain Expansion Group

#poverty #poor

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