The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1937-11-09
THE INSIDE OF SOCIAL SECURITY

DIR. A. I. Plerson.
THE INSIDE OF SOCIAL SECURITY"
At last the public is beginning to get
faint idea of the inside operations OF the
so-called social security law. 1t shows
ND rs one of the SmoOthest tricks the new
dealers have devised to separate the tax
PAYERS from their cash. One thing which
a large section of the country'S population
has heretofore overlooked is the fact that
like all government schemes which cost
money. this one will ultimately involve the
entire population of the country. The idea
has prevailed that as taxes are collected
and benefits promised to certain classes OF
citizens only. other classes of citizens,
while receiving no direct benefits, will eS-
cape the cost of the scheme. The fact IS
that the plan is a hidden tax scheme as Tar
as these classes are concerned and they
will ultimately be MIXED by the federal
tax collectors, along with the employers
and workers who are taxed.
As briefly as possible, it may be said
that the old age pension scheme is planned
10 drain vast tax levieS under sO-called
social security" into the United States
treasury. where they will pass into the
general fund From the general fund this
money will be paid out on the numerous
expense accounts of the government. AS
fast as it is collected this money is expend-
ed 1t comes in at one end of the treasury
and almost Immediately goes out at the
other end.
To cover this social security or old
age pension fund borrowing by the gov
eminent, the governments promises to
paw, or bonds, will be issued and held by
the treasury. so that at any time in the
future benefciaries of the law will not
have their pension money in a trust fund
held by the government but it will be rep
resented by the governments promises to
pay, or bonds.
The entire proposition may be summed
up by saving that the government collects
billions of taxes on this old age pension
account, proceeds at once to spend the
money (inStead of holding it in trust for
the pensioners and thirty or forty years
from now, or at any other date in the fu-
ture, what the pensioners will have is the
governments promises to pay them their
pensions.
At this point in the discussion we can
almost hear the excited protests of those
citizens who want to know if we think the
government will fail in its promises to
these people, will try to cheat them OF
their pension money, or will be financially
unable to meet it's obligations in the future.
We answer by saying that undoubtedly
these persons will have just and valid
claim against the government, but wheth-
err or not they can collect on it will depend
on the governments success in collecting
this old age pension tax money again, or,
certainly, will depend on the financial con-
dition of the country and the government
at any time in the future.
Right here is the big, protruding point
of the whole matter Here is where the
trick is concealed.
The government collects the old age
pension fund and SPENDS 1T. Clearly,
then, when the pensioners are to be paid
off in the future the government will not
have that money with which to pay them.
1t will have gone with the wind.
The governments only possible plan for
paying off the pensioners will be by COL
LECTING TAXES AGAIN to pay off.
The government has no money except