Rick Perry and Mitt Romney went after each other at the debate over this term “Ponzi scheme.”
Over and over Rick Perry has said that Social Security is a Ponzi scheme and I agree with him. John Brummett asserted,”Rick Perry was last week’s savior, but then he got caught not believing in Social Security, which is a general election problem in, say, Florida.” However, it is my view that entitlements must be looked at and the cold hard facts show that Social Security is a Ponzi Scheme!!!
Comments by Rick Perry and Mitt Romney on Social Security during the last two Republican presidential debates may have provided more insight into these two men than expected — something to ponder with the next debate coming up.
Mr. Romney told us that he is “committed to saving Social Security” and that “under no circumstances would I ever say by any measure it’s a failure.”
Mr. Perry called the system a “Ponzi scheme” and said it’s “a monstrous lie” to tell young workers that their payroll taxes will provide them with Social Security benefits.
Bill Shipman is chairman of CarriageOaks Partners, LLC and co-chairman of the Cato Institute Project on Social Security Choice.
Mr. Romney replied that Mr. Perry’s position could disqualify him as the GOP nominee. Apparently, a line has been drawn.
In his 2005 State of the Union Address, President Bush spent about 20 percent of his time talking about Social Security reform, specifically personal investment accounts. Democrats fought this idea with all their strength. Although it’s less well known, Republicans engaged in a family brawl in which many fought Mr. Bush’s investment-accounts idea, too. They were afraid that if they supported the president, they would lose their next elections.
But now the brawl has broken through the Republican skin and is in the open. What can we learn from this?
First, reflect upon Governor Romney’s point that Social Security is not a failure “by any measure,” and try to square that with the fact that Social Security is mandatory. Each worker is compelled to pay 10.6% of his wage, on up to $106,800, to the government for the retirement portion of the system. That means the average-wage earner has no choice on how to allocate 10.6% of his wage income for retirement. That’s bad enough, but it’s made worse by the fact that his Social Security benefits are very low: about half of what his Social Security taxes would provide if they were invested in a diversified portfolio of stocks and bonds.
Second, in 1950, when there were 16 workers per beneficiary, the payroll tax rate was just 3% on $3,000 of wages. Since then the tax rate increased 18 times, and the wage subject to the tax increased 43 times. After adjusting for inflation the maximum tax jumped 1,322%. Benefits rose as well, but proportionally much less. The squeeze in benefits relative to taxes has progressively made the system a worse deal.
Third, Social Security’s actuaries estimate that the mismatch between future taxes and benefits is just under $7 trillion. That number represents what must be invested right now, in addition to all future payroll taxes, in order to pay scheduled benefits.
Finally, in the 1960 Flemming v. Nestor case, the Supreme Court ruled that workers have no property rights to their scheduled benefits. The government can reduce them at will, which it did in 1983 by increasing the retirement age from 65 to 67; or it can increase the tax at will, which it consistently has done. Also, when one member of an elderly couple dies, the government — in most cases — reduces Social Security benefits by a third. Sort of a death tax.
This system of no choice, low benefits relative to taxes, significant tax increases, a massive unfunded liability, the absence of personal property rights and a death tax apparently does not rise to the level of failure “by any measure” according to Gov. Romney.
For his part, Gov. Perry has called Social Security a Ponzi scheme: a fraudulent investment operation that pays subscribers not from investment earnings but from new subscribers’ funds. To entice subscribers, such schemes must provide unusually high and/or stable returns. Given that the high returns require endless new subscribers to pay off previous ones, such schemes ultimately fail.
Although Mr. Perry’s Ponzi analogy is not technically correct, it has some validity in that Social Security benefits are financed by ever more subscribers — that is, wage earners. But unlike a Ponzi scheme, Social Security is not fraudulent, and it doesn’t pay large benefits relative to taxes. Indeed, it pays low benefits. A Ponzi scheme promises high returns. That’s why people freely, although foolishly, play the game. Social Security promises low returns. That’s why people are forced to play the game.
Mr. Romney has stated that the Republican nominee must be committed to saving Social Security, not abolishing it. It’s not clear what he means. Does he want to save the objective of Social Security, which is, broadly speaking, the provision of retirement benefits? Or does he want to save its structure wherein today’s young finance benefits for today’s old?
Mr. Perry says the system is a Ponzi scheme and a lie. Does this mean that he wants to get rid of the structure yet keep the objective? Or does it mean that he wants to get rid of both?
The two candidates’ differences on this issue may shed light on bigger philosophical disagreements they may have. Do they see government as bungling but benign, only in need of a seasoned CEO who can more successfully manage the enterprise? Or do they see government as overreaching, stifling, oppressive and hurtful in its reach, and in need of a strong and principled leader to shove it out of the way?
How these candidates deal with Social Security, the government’s largest program, may shed light on who they really are.
Their thinking is that either God is not powerful enough to prevent evil or else God is not good. He is often blamed for tragedy. “Where was God when I went through this, or when that happened.” God is blamed for natural disasters, Even my insurance company describes them as “acts of God.” How to handle this one- (O.N.E.) a. Origin of evil— man’s choice- God created a perfect world… b. Nature of God—He forgives, I John 1:9—He uses tragedy to bring us to Himself, C.S. Lewis, “God whispers to us in our pleasures, speaks in our conscience, but shouts in our pains: it is His megaphone to arouse a deaf world.” c. End of it all—Bible teaches that God will one day put an end to all evil, and pain and death. “God will wipe away every tear from their eyes; there shall be no more death, nor sorrow, nor crying. There shall be no more pain, for the former things have passed away” (Rev. 21:4).As Christians we have this hope of Heaven and eternity. Share how it has made a tremendous difference in your life and that you know for sure that when you die you are going to spend eternity in Heaven. Ask the person, “May I ask you a question? Do you have this hope? Do you know for certain that when you die you are going to Heaven, or is that something you would say you’re still working on?”How could a loving God send people to Hell? (O.N.E.) a. Origin of hell—never intended for people. Created for Satan and his demons. Jesus said, “Depart from Me, you cursed, into everlasting fire prepared for the devil and his angels” (Matt 25:41). Man chooses to sin and ignore God. The penalty is death (eternal separation from God) and, yes, Hell. But God doesn’t send anyone to Hell, we choose it by refusing or ignoring God in attitude and action. b. Nature of God—“ God is not willing that any should perish, but that all should come to repentance” (2 Peter 3:9). He is so loving that He sent His own Son to die and pay the penalty for our sin so that we could avoid Hell and have the assurance of Heaven. No one in Hell will be able to blame God. He doesn’t send people there, it’s our own choice. We must choose to repent, to stop ignoring God in attitude and action, accepting His salvation and yielding to His leadership.c. End of it all—Bible teaches that God will one day put an end to all evil, pain, death, and penalty of Hell. “God will wipe away every tear from their eyes; there shall be no more death, nor sorrow, nor crying. There shall be no more pain, for the former things have passed away” (Rev. 21:4).As Christians , we need not worry about Hell. The Bible says, “these things have been written . . . so that you may know you have eternal life” (1 John 5:13). I have complete confidence that when I die, I’m going to Heaven. May I ask you a question?___________________________-
Answers the problem of evil and a good God… puts the issue squarely in the lap of the skeptic asking the question (where it belongs).
The problem of evil is a significant moral issue in the atheist’s arsenal. We talk about a God of goodness, but what we see around us is suffering, and a lot of it apparently unjustifiable. Stephanie said, “Disbelief in a personal, loving God as an explanation of the way the world works is reasonable–especially when one considers natural disasters that can’t be blamed on free will and sin.”{17}
One response to the problem of evil is that God sees our freedom to choose as a higher value than protecting people from harm; this is the freewill defense. Stephanie said, however, that natural disasters can’t be blamed on free will and sin. What about this? Is it true that natural disasters can’t be blamed on sin? I replied that they did come into existence because of sin (Genesis 3). We’re told in Romans 8 that creation will one day “be set free from its slavery to corruption,” that it “groans and suffers the pains of childbirth together until now.” The Fall caused the problem, and, in the consummation of the ages, the problem will be fixed.
Second, I noted that on a naturalistic basis, it’s hard to even know what evil is. But the reality of God explains it. As theologian Henri Blocher said,
The sense of evil requires the God of the Bible. In a novel by Joseph Heller, “While rejecting belief in God, the characters in the story find themselves compelled to postulate his existence in order to have an adequate object for their moral indignation.” . . . When you raise this standard objection against God, to whom do you say it, other than this God? Without this God who is sovereign and good, what is the rationale of our complaints? Can we even tell what is evil? Perhaps the late John Lennon understood: “God is a concept by which we measure our pain,” he sang. Might we be coming to the point where the sense of evil is a proof of the existence of God?{18}
So,… if there is no God, there really is no problem of evil. Does the atheist ever find herself shaking her fist at the sky after some catastrophe and demanding an explanation? If there is no God, no one is listening.
When I think of all our hard earned money that has been wasted on stimulus programs it makes me sad. It has never worked and will not in the future too. Take a look at a few thoughts from Cato Institute:
On Thursday night, the president laid out his plan for job creation, a $447 billion stimulus proposal, most of which we have seen before. After all, if Congress passes this new round of government spending, it would be the seventh such stimulus program since the recession began. George W. Bush pushed through two of them, totaling some $200 billion, and Obama already has enacted four more, with a total price tag of roughly $1.3 trillion.
The result: Three years and $1.5 trillion of spending later, we are back to the same gallimaufry of failed ideas. Among the worst:
3. Bailing Out the Teachers Unions. The president’s plan calls for spending $35 billion in grants to states to hire or retain some 280,000 teachers. The president wants to spend another $30 billion to repair and modernize school buildings, with the catch that school districts that accept the funds are prohibited from laying off any teachers. Spending on school building and repair has already increased by 150% over the last two decades, without either improving education or generating many jobs. And the greatest threat to teacher retention is not a lack of federal aid, but burdensome labor contracts.
4. More Infrastructure Spending. Like all the stimulus bills before it, the president’s latest proposal calls for still more pork barrel spending for “infrastructure.” One begins to wonder why we haven’t paved over the entire country by now. No doubt there are roads and bridges in need of repair, but the ability of the federal government to sort out good projects from bad is debatable at best. And the president is once again planning to plow money into such dubious projects as high-speed rail.
5. More Tax Hikes. Worst of all, the president plans to pay for all this new spending by — you guessed it — raising taxes on businesses and high-income Americans. The president, once again, referred to “millionaires and billionaires” in his speech, but his actual proposal calls for raising taxes on families earning as little as $250,000 per year. In places like New York, that’s not the “super rich.” In addition, many of these tax hikes would fall on small businesses. The president’s jobs plan, then, is to tax exactly those people and businesses that create jobs. And all this is on top of the new taxes and regulations that the Obama administration has already pushed through.
It’s not just the details of the president’s proposal that are wrongheaded, it’s the basic concept. The real drags on our economy have nothing to do with the failure of government to spend enough. The federal government is now spending roughly 24% of GDP. State and local governments are spending another 10% to 15%, meaning government at all levels is spending roughly 40 cents out of every dollar produced in this country. If government spending brought about prosperity, we should be experiencing a golden age.
The president’s plan is a bit like having someone break your leg then give you a crutch and call it a stimulus. Might it not be better to avoid breaking your leg in the first place? It’s time to stop spending, cut taxes, reduce our debt, and rollback burdensome regulation. That will generate far more jobs than any government jobs program.
When it comes to stimulus, the seventh time is not the charm.
Barrett Jones of Alabama Crimson Tide has spent time the last two years ministering to earthquake victims in Haiti. (Barrett grew up and went to ECS where I graduated and to Bellevue Baptist where I was a member while growing up. Adrian Rogers was the pastor from 1972 to 2004.) Actually I wrote about Barrett’s faith in Christ and you can read my article at this link.
I am hoping my Arkansas Razorbacks win the game tomorrow, but Barrett Jones is a winner in life because of his relationship with Christ. He has been a Christian leader on that team and even Coach Saban has noticed.
For the second straight year, Alabama right guard Barrett Jones spent his spring break helping people in Haiti.
Alabama’s right guard traded the chance to relax for another week, an annual college tradition. In return, he traveled with 31 people, including 13 UA classmates and his family, to help people still struggling with daily life. They worked on a school and an orphanage, and helped feed people in need.
More than a year after the earthquake rattled the Haitians’ world to dust, Jones was still trying to make sense of his own.
“We have problems day-to-day and week-to-week in our lives,” Jones said. “We make such a big deal about them and we think they’re so extreme. You go over there and you literally see somebody who has nothing and lives under a tin roof and a mud hut, and you think how fortunate am I to come home and have food.”
Despite the passage of time, Jones still painted a bleak scene.
“I saw a little progress, but honestly not much,” he said. “There’s so much damage over there it’s like where do you start? As we know, they don’t really have the infrastructure in place to really rebuild it. It’s still a bad situation.”
LITTLE ROCK — The state Crime Laboratory determined a 24-year-old man found dead in a bathtub with a Little Rock meteorologist in a Maumelle home died from asphyxiation, police said Thursday.
The manner of death of Paul Dexter Williams of Mountain Pine was officially listed as undetermined after an autopsy by Associate Medical Examiner Frank Peretti. There were also “significant findings of acute combined methamphetamine and amphetamine intoxication,” according to a statement released by Maumelle police Thursday.
On the morning of Sept. 5, Maumelle officers were called to the home of ChristopherBarbour at 16 Village Way.
Barbour, 36, told police that he had invited Little Rock meteorologist Brett Cummins, 33, to his house the previous night and Cummins arrived with Williams around 8 p.m., a police report said.
The men began to drink and use illegal narcotics, Barbour told police. He said he wasn’t sure what the drugs were, but said “they were snorting them.”
Barbour said that around 10 p.m., Cummins and Williams entered the tub and Barbour later joined them. Barbour said he left the other two men around 11 p.m. and went to sleep on the couch inthe living room.
The next morning, Barbour found the men in the tub, which had no water in it. Barbour woke Cummins and the men realized Williams was not conscious and his face was a “different color.”
Cummins, a meteorologist on KARK-TV, Channel 4, at the time of the death, resigned from the station Sept. 9.
The Police Department will turn the case over to the Pulaski County prosecuting attorney’s office, which will determine whether charges will be filed. A spokesman for the prosecutor’s office said the case file had not been received.
This article was published today at 4:04 a.m.Arkansas, Pages 10 on 09/23/2011
I welcome the input from those that read my blog. Recently I received some criticism from readers and Jordan is probably more of the most vocal. He wrote today, “I hardly see a ‘tragic’ death as you call it, a morally sound reason to throw in people’s faces what drugs do to people…You know as […]
In today’s Arkansas Democrat-Gazette Linda Caillouet wrote: LITTLE ROCK — When news broke of the death of Dexter Williams over the Labor Day weekend at a Maumelle home visited by then-KARK meteorologist Brett Cummins, most local news media reported details from the police report. This newspaper, KATV and KTHV reported that police said the body of […]
What started out on Sunday night September 4 as a local story now has grabbed national attention through both CNN and Fox News. Brett Cummins, 33, is seen in a photo on the website of Little Rock station KARK-TV. Cummins works as a meteorologist for the station. Police Probe Death of Arkansas Man Found in […]
KATV reported: Ark. weatherman quits after found with body in tub Posted: Sep 09, 2011 5:45 PM CDTUpdated: Sep 09, 2011 6:00 PM CDT By JEANNIE NUSS Associated Press LITTLE ROCK, Ark. (AP) – An attorney for an Arkansas meteorologist who was found in a hot tub with a dead body earlier this week says his client […]
I have mentioned before that I thought it was sad that KARK ignored the fact that Brett Cummins was snorting coke with the young man, Dexter Williams, on Sunday night and that Williams died as a result. Now at least the other stations in the Little Rock Market have been covering the story. Rival Stations […]
KARK’s website includes these words: Thursday afternoon, Brett Cummins released the following statement to CNN through his attorney: Brett Cummins is devastated by the tragic death of his friend Dexter Williams and extends his sincere condolences to Dexter’s family. They remain foremost in his thoughts and prayers. Mr. Cummins deeply regrets the grief this incident […]
Today’s THV channel 11 in Little Rock reported: MAUMELLE, Ark. (AP) – An attorney for a local meteorologist says no foul play was involved in the death of a 24-year-old Mountain Pine man. Little Rock-based lawyer Mark Hampton said Thursday that KARK meteorologist Brett Cummins is innocent. Authorities say Cummins and the body of 24-year-old […]
Drugs and alcohol have always been a pitfall that many of the wealthy fall into. We see rock bands that become famous have lots of temptations thrown their way and many fall into these traps. Ron “Pigpen” McKernan and Barry McGuire fell into these traps. One joined the “27 Club” and the other left the […]
The recent events in Little Rock concerning KARK TV’s top weatherman Brett Cummins and his experience of drinking alcohol and snorting coke has left a lot of people asking questions. Since the evening ended in the tragic death of one of Brett’s friends, Dexter Williams, many questions have centered on the use of illegal drugs. […]
These are some pictures of Dexter Williams. Unfortunately his life was cut short while drinking and snorting coke with KARK weatherman Brett Cummins. (Cummins has resigned as of Friday.) Dexter Williams (Photo from family) Dexter Paul Williams (facebook photo) Related posts: Should recent events in Little Rock be reason to blog about the dangers of […]
Sept. 9 (Bloomberg) — David Addington, vice president at the Heritage Foundation, and Ryan McConaghy, economic director at Third Way, discuss President Barack Obama’s $447 billion jobs plan. They speak with Deirdre Bolton and Erik Schatzker on Bloomberg Television’s “InsideTrack.” (Source: Bloomberg)
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It is a time for statemen. However, President Obama steps up to the plate and fails to swing.
Two years ago, as the United States was coming out of the last recession, President Obama was asked how raising taxes on anyone would help with the economy. The President’s answer? “Normally you don’t raise taxes in a recession, which is why we haven’t, and why we’ve instead cut taxes.” Fast forward to today, as America is struggling with zero job growth and a stagnant economy, and the President has dramatically changed his rhetoric, proposing $1.5 trillion in new taxes on the American people and the country’s job creators.
Those massive tax increases come as part of the President’s plan to reduce the nation’s out-of-control debt, but rather than address the underlying spending problem, it will further deepen America’s economic quagmire and only serves to stall the real reform America needs in order to get on a path of fiscal sanity, as Heritage’s Alison Fraser explains:
Obama is demanding a ‘balanced’ approach as though somehow hiking taxes is both fair and necessary. But this notion that he is pushing — half tax hikes and half spending cuts — is beyond the class warfare message it sends. It is a tactic. A tactic to stall the real reforms that our leaders in Washington must undertake now in order to avert a fiscal, economic and moral crisis.
Real reform is necessary because of the depth and scope of America’s spending nightmare. ”The federal government today is claiming roughly one-fourth of total economic output — about 25 percent of gross domestic product,” Heritage’s Patrick Knudsen writes. That’s a post-World War II record, and it’s a huge drag on the economy since all that spending is paid for by taxes and borrowing, which reduce the amount available for investment in the private economy. And down the road, the outlook isn’t good: Social Security is growing at a rate of 5.8 percent per year, Medicare at 6.3 percent, and Medicaid at 9 percent. Unless those programs are fundamentally reformed, their costs will keep going up, and taxes will have to keep being increased to pay for them.
Disappointingly, the President yesterday retreated from his previous overtures to entitlement reform and took Social Security reform off the table while proposing minor cuts to Medicare and Medicaid–rather than the reform that would make a significant difference for the country. Obama’s plan is bad news for our nation’s defense as well, posing even more radical cuts for an already under-funded military.
Setting aside for a moment the fact that the President’s plan ignores America’s core spending problems, his plan to drastically raise taxes is coming at a time when the country can least afford it. How will the latest Obama tax increase play out? Heritage’s Curtis Dubay explains:
The new revenue would come from allowing the Bush tax cuts to expire for families and small businesses earning more than $250,000 a year, limiting their deductions, and the President’s new “Buffett Rule” that would further raise these job creators’ taxes in some way which the President has not defined. He also wants to eliminate deductions, credits, and exemptions. This is a war the President is waging on success–as if so-called fat cats were the root of our spending problems.
The President has set his sights on the wealthy despite the fact that the top 10 percent of earners in America already pay about 70 percent of federal income taxes. And taxing America’s job creators will only serve to reduce productivity, slow economic growth, depress wages and salaries, and decrease household wealth. To use the President’s own words, raising taxes in bad economic times would “take more demand out of the economy and put businesses in a further hole.” Where is that President Obama today?
America is facing an unemployment crisis, a debt crisis, a spending crisis, and an entitlement crisis. Instead of making things better, President Obama wants to make matters worse by icing that nightmarish cake with massive tax increases. Two years ago, President Obama emphatically renounced raising taxes in a recession. Now, with the 2012 election looming, he has changed his tune and is taking aim at America’s job creators in a game of class warfare designed to play to his liberal base. Job creation has fallen by the wayside.
More Accurate Inflation Protection. The annual cost of living adjustment (COLA) for Social Security, which protects retirees against inflation, will be based on the Chained Consumer Price Index (C-CPI-U), a measure of inflation that is more accurate than the index used currently. The Bureau of Labor Statistics specifically designed this inflation measure to better reflect the way that consumers buy different items as the prices of various products fluctuate.
A More Reasonable Retirement Age. The plan adjusts the retirement age to reflect increases in life expectancy and those anticipated in the future. Under the plan, these changes are phased in gradually. Those nearing retirement are affected only slightly. Over the next 10 years, the age for full benefits rises to 68 for workers born in or after 1959. Over the next 18 years, the early retirement age rises to 65 for workers born in or after 1964. After that, both early and normal retirement ages will be indexed to longevity, which will add about one month every two years according to current projections.
The plan recognizes that a small proportion of workers will be physically unable to work until these ages. It therefore includes an improved disability system to protect them. The reformed disability system ensures that those who are unable to work longer receive a quick and accurate decision on their benefit application rather than facing today’s long delays, and improves today’s often arbitrary decision-making process.
Incentives to Work Longer. Starting immediately,those who work past their full-benefit age receive a special annual tax deduction of $10,000,regardless of income level. For instance, once the new system is completely phased in, a worker earning $50,000 per year who delays Social Security payments will see a $200 per month increase in spendable income.
The award-winning documentary I.O.U.S.A. opened up America’s eyes to the consequences of our nation’s debt and the need for our government to show more fiscal responsibility. Now that more Americans and elected officials are aware of our fiscal challenges, the producers of I.O.U.S.A. created I.O.U.S.A.: Solutions, a follow-up special focusing on solutions to the fiscal crisis. Learn more at http://www.iousathemovie.com/.
Governor Rick Perry got in trouble for calling Social Security a Ponzi scheme and I totally agree with that. This is a series of articles that look at this issue. The film series IOUSA does a great job of showing that Social Security is a bust. Perry is right on this.
Social Security is currently unsustainable. It began running deficits in 2010 and its trust fund will be exhausted by 2036, which is when seniors will see about a 25 percent cut in benefits. This is the scenario we face if Congress and the President fail to enact meaningful entitlement reform and continue reckless fiscal policies. This course is reversible, however.
At a recent House Budget Committee hearing on the fiscal facts concerning Medicare and Social Security, Members were divided on how to save Social Security. Despite hearing from Steve Goss, Social Security’s chief actuary, that raising taxes is not a necessity, tax hikes remained the leading option among certain lawmakers. Both parties agree that Social Security is insolvent, but they disagree on what to do about it.
Raising taxes, however, is not an option. Amidst the greatest recession in three decades, higher payroll taxes threaten to damage the American economy. Heritage has a new plan for Social Security, as presented in Saving the American Dream. It promises to restore fiscal responsibility and protect Americans from unneeded tax hikes.
At present, workers and their employers each pay 6.2 percent for Social Security retirement and disability benefits, adding up to a 12.4 percent payroll tax that is levied on every single worker’s income. If the government were to increase this tax to pay for Social Security’s deficits, every American worker and his boss would split an increase of at least 2.2 percent. Raising these taxes will discourage employers from hiring new workers and exacerbate unemployment.
Tax-loving lawmakers then turn to the tax cap. Social Security taxes are currently deducted only from the first $106,800 each worker earns. But some lawmakers suggest that any money Americans don’t “need” is fair game for tax hikes. President Obama most recently revealed this philosophy, fundamentally at odds with America’s job creators, during a press conference on the debt limit. Similarly, certain members at the recent House Budget Committee hearing suggested lifting the cap on the Social Security payroll tax to pay for the program’s shortfall. But taking more money out of the private economy limits entrepreneurial exercise—the true source of wealth in any free-market economy.
The Heritage Foundation plan does not call for unnecessary tax increases. Instead, it restores Social Security to its original purpose of being a safeguard against senior poverty. The plan includes both a transition into a flat benefit for those who work more than 35 years, as well as phasing out Social Security benefits for those who have significant non-Social Security retirement income. The plan also contains incentives to encourage Americans to work beyond the age at which they would normally receive benefits. Because Americans are living longer than ever before, they are spending more years in retirement. Therefore, Saving the American Dreamcalls for gradually increasing the retirement age and then indexing it to life expectancy.
Unemployment remains high, and Social Security faces serious fiscal challenges. It simply cannot afford to pay all of the future benefits it has promised. Elected leaders must realize that tax hikes are not the answer and that there are different ways to save both Social Security and the economy. Saving both requires our attention now, and as Heritage’s David John writes, “ [I]nstead of just blindly defending the current program, both Congress and the Obama Administration should propose comprehensive programs that permanently fix Social Security.”
I am currently going through his film series “Free to Choose” which is one the most powerful film series I have ever seen.
PART 3 OF 7
Worse still, America’s depression was to become worldwide because of what lies behind these doors.
This is the vault of the Federal Reserve Bank of New York. Inside is the largest horde of gold in the world. Because the world was on a gold standard in 1929, these vaults, where the U.S. gold was stored, provide an excellent test of where the depression originated. If the depression had started in Europe or somewhere else in the world, the U.S. would have lost gold, more gold would have flown out of the country then came in. If, on the other hand, the depression started in the United States, the opposite would happen. More gold would come in from abroad as the effects of our depression spread there then went out abroad, in reality that is exactly what happened.
When the international money system was based on gold, the rules of the game were these. The gold in the United States was supposed to control the amount of money issued by the Federal Reserve. In turn, the amount the Federal Reserve issued controlled the amount of money issued by the commercial banks which in turn controlled the amount of money that individuals, businesses and industry could get from the banks. The result, a monetary structure all supposedly tied to the amount of gold in the vaults in the United States. But in 1930 the Federal Reserve didn’t play by the rules. It stood by as banks started to collapse and with each one that went the money supply fell. Businesses and industry inevitably began to fail. Americans, now poor, bought less from abroad. Britain was one of the countries effected. Like the United States, Britain had its own monetary structure tied to gold. The trouble was that Britain could now sell less abroad. It cut down the amount it bought from abroad but not by enough. Under the rules of the gold standard, it had to pay the difference in gold. With every bar of gold that was shipped out of Britain, the amount of money decreased.
A depression that was already underway in Britain got worse. British gold flowed into the United States, supposedly to form the foundation of a new slice of the monetary structure. But the Federal Reserve didn’t let it. The gold was simply locked away. The results, Britain remained in trouble until in 1931 it went off the gold standard cutting the link between the amount of gold and the amount of money. In the United States, suffering the worst depression in history, there was plenty of gold, but to no avail.
Although these events happened almost 50 years ago, many of our policies today derived directly from them. Central bankers throughout the world, government officials everywhere, are afraid of a new great depression. They, have therefore, moved the opposite direction. Instead of the problem of too little money, we are faced with the problem of too much money. The problems of inflation that plagues us today trace directly from the problem of deflation that plagued us from 1929 to 1933.
People came to believe that free market capitalism had failed. Something was needed to replace it. At Cambridge University in England, a new orthodoxy emerged in the 30’s one that has remained powerful to this day.
It owes its influence to the brilliance of one man. John Manrd Kane was unquestionably one of the greatest economists of all time. Like other economists of his generation, he found The Great Depression both a paradox and a challenge. It was a paradox because it seemed to contradict some of the fundamental principles that economists have come to take for granted. Kane rose to the challenge by constructing a complex and sophisticated hypothesis which not only explained what had been going on, but also offered a way out way to end The Great Depression and to avoid similar episodes in the future. The core of his theory was that what happened to the quantity of money didn’t matter. What really mattered was a particular category of spending. In economists jargon, autonomous spending. What kind of spending is that? It might be investment by business enterprises in building factories and adding to the number of machines and adding to inventories. It might be spending by individuals to build houses. Or, most important of all, it might be deficit spending by government. If private spending on investment, on house building, is not enough to maintain full employment, then government could always step in and spend enough to make up the difference. The theory of pump priming was born. The theory was a godsend to politicians who had been grasping at any expedient. After all, throughout the ages, politicians had been only too willing to spend money provided they didn’t have to tax their citizens to pay for it. And here along came a scientific theory offered under the most responsible of auspices that justified what they had been wanting to do all along. Is it any wonder that government spending has exploded ever since or that deficit spending, even without the excuse of war, and on a large scale, has become the order of the day?
In America, the new Roosevelt administration adopted the Keynesian approach. It authorized massive spending on government projects. It involved government increasingly in the running of the economy. It developed programs designed to provide security for every individual. In England too, the idea that only the government could bolster the economy was firmly established as this film at the time makes clear.
With the assistance of the national government, work was restarted on the great Granada, 534. And we all hope that this is a prelude to a period of increasing prosperity in the industry. Exports of cotton goods to India have increased and as a result of the quota system in the colonies, which the national government introduced in order to diminish the dangers of Japanese competition, exports of cotton good to those colonies have been more than doubled. One of the most important contributions which the national government has made toward the improvement of social conditions has been a housing campaign without parallel in our history.
Though some of these measures may have been useful and indeed needed during the depression years, the length to which they have since then carried would have horrified Kane.
Kane died in 1946. I have always regarded it as a tragedy that they did not live another decade. He was the one man who had the standing, the personality, the force of character to persuade his disciples not to carry too far some ideas which were good for the 1930’s but which did not apply in the post war situation. That he might have done so is suggested by an article he wrote just before his death. The last article he ever wrote published after his death. In that article he expressed strong reservations about the lengths to which some of his disciples had been carrying his ideas. If he had been able, if he had lived another decade, the postwar inflationary explosion might have been avoided.
Francis Schaeffer and C. Everett Koop were prophetic (jh29)
What Ever Happened to the Human Race?
I recently heard this Breakpoint Commentary by Chuck Colson and it just reminded me of how prophetic Francis Schaeffer and C. Everett Koop were in the late 1970’s with their book and film series “Whatever happened to the human race?”
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Twin Killings
Haggling over Price
By: Chuck Colson|Published: September 21, 2011 7:38 AM
I know there are plenty of bioethicists who believe in the sanctity of life. Tragically, as one disturbing trend shows, there are also plenty who don’t.
As my late good friend Richard John Neuhaus once wrote, “for the most part, bioethicists are in the business of issuing permission slips for whatever the technicians want to do.”
A less charitable friend of his put it more bluntly: “a bioethicist is to ethics what a [prostitute] is to sex.” A recent article in the New York Times shows why one could be so harsh.
The story is about the rising number of what are euphemistically called “twin reductions”: Women who are carrying twins decide to kill one of their unborn children while allowing its sibling to live.
This demonic procedure was the unintended but not unforeseeable consequence of reproductive technologies such as in-vitro fertilization. Women undergoing IVF often found themselves carrying four, five, and even six children at a time.
The medical response was to “reduce” the number of fetuses to a more “manageable number.” “Reducing” in that case meant a shot of potassium chloride to the heart of one of the three-month old fetuses.
And do I have to tell you that the definition of what’s “manageable” has shrunk over the years? In a blink of an eye, reducing meant from going from whatever number of children there were to twins.
At this point, bioethicists became uneasy: Dr. Mark Evans, a pioneer of the “reduction” procedure, helped draft guidelines for the industry. According to the guidelines, “most reductions below twins violated ethical principles.” Evans wrote that performing these reductions turned doctors into “technicians to our patients’ desires.”
Do I have to tell you that Evans himself now performs twin reductions? He justified his reversal by saying that he understood why “women didn’t want to be in their 60s worrying about two tempestuous teenagers or two college-tuition bills.”
In other words, as New YorkTimes columnist Ross Douthat noted, Evans had become a technician to his patients’ desires.
Douthat spelled out why none of us should be surprised at either Evans’ reversal or the growth of “twin reduction.” What he calls “liberal bioethics” is always “adapting” to meet patients’ desires. What was unacceptable yesterday will be “understandable” tomorrow. Bioethicists acknowledge our concerns and promise that they will draw the line tomorrow. But, as Douthat says, “tomorrow never comes.”
That’s because, outside the Christian view that all human life is sacred, they have no real basis on which to draw that line. For all the talk about “human dignity,” this brings to mind a joke told by Winston Churchill: a woman asked if she would sleep with a man for 5 million pounds, replies “yes.” When asked if she would do it for 5 pounds, she replies, “What kind of woman do you think I am?” to which the man replies, “we’ve already established that, now we’re just haggling over price.”
Bioethicists have already conceded that killing an unborn child for reasons that have nothing to do with saving the mother’s life or even her health is acceptable. They’ve given their sanction to medical procedures that make this procedure inevitable. Now they are haggling over details: how patients’ desires should be worded before they write the permission slip.
Maybe Neuhaus’ friend was right, after all.
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Francis Schaeffer is a hero of mine and I want to honor him with a series of posts on Sundays called “Schaeffer Sundays” which will include his writings and clips from his film series. I have posted many times in the past using his material.
Philosopher and Theologian, Francis A. Schaeffer has argued, “If there are no absolutes by which to judge society, then society is absolute.” Francis Schaeffer, How Shall We Then Live? (Old Tappan NJ: Fleming H Revell Company, 1976), p. 224.
“We stand today on the edge of a great abyss,” they wrote. “At this crucial moment choices are being made and thrust on us that will for many years to come affect the way people are treated. We want to try to help tip the scales on the side of those who believe that individuals are unique and special and have great dignity.”
This year marks the 25th anniversary of “Whatever Happened to the Human Race?” by Francis Schaeffer and C. Everett Koop. The anniversary serves to remind us just how unaware and unawake most evangelicals really were 25 years ago — and how prophetic the voices of Schaeffer and Koop were.
Whatever Happened to the Human Race? was both a book project and a film series, the fruit of an unusual collaboration between Francis Schaeffer, one of the truly significant figures of 20th-century evangelicalism, and C. Everett Koop, one of the nation’s most illustrious pediatric surgeons. They were an odd couple of sorts, but on the crucial issues of human dignity and the threat of what would later be called the “Culture of Death,” they were absolutely united.
Francis Schaeffer, who died in 1984, was nothing less than a 20th-century prophet. He was a genuine eccentric, given to wearing leather breeches and sporting a goatee — then quite unusual for anyone in the evangelical establishment. Then again, Schaeffer was never really a member of any establishment, and that is partly why a generation of questioning young people made their way to his Swiss study center known as L’Abri.
Big ideas were Schaeffer’s business — and the Christian worldview was his consistent framework. Long before most evangelicals even knew they had a worldview, Schaeffer was taking alternative worldviews apart and inculcating in his students a love for the architecture of Christian truth and the dignity of ideas.
Key figures on the evangelical left wrote Schaeffer off as a crank, and he returned the favor by denying that they were evangelicals at all. They complained that he did not follow their rules for scholarly publication. He pointed out that people actually read his books — and young people frustrated with cultural Christianity read his books by the thousands. They were looking for someone with ideas big enough for the age, relevant for the questions of the times, and based without compromise in Christian truth. Francis Schaeffer — knee pants and all — became a prophet for the age.
Dr. C. Everett Koop, on the other hand, is a paragon of the American establishment — a former surgeon-in-chief at the Children’s Hospital in Philadelphia and later surgeon general of the United States under President Reagan. In 1974 Koop catapulted to international attention by performing the first successful surgical separation of conjoined twins. A Presbyterian layman, Koop lives in quasi-retirement in Pennsylvania. His surgical procedures remain textbook cases for medical students today.
Whatever Happened to the Human Race? awakened American evangelicals to the anti-human technologies and ideologies that then threatened human dignity. Most urgently, the project put abortion unquestionably on the front burner of evangelical concern. The tenor of the times is seen in the fact that Schaeffer and Koop had to argue to evangelicals in the late 1970s that abortion was not just a “Catholic” issue. They taught many evangelicals a new and urgently needed vocabulary about embryo ethics, euthanasia and infanticide. They knew they were running out of time.
“Each era faces its own unique blend of problems,” they argued. “Our time is no exception. Those who regard individuals as expendable raw material — to be molded, exploited, and then discarded — do battle on many fronts with those who see each person as unique and special, worthwhile, and irreplaceable.”
Every age is marked by both the “thinkable” and the “unthinkable,” they asserted — and the “thinkable” of late-20th-century Western cultures was dangerously anti-human. The lessons of the century — with the Holocaust at its center — should be sufficient to drive the point home. The problem, as illustrated by those who worked in Hitler’s death camps, was the inevitable result of a loss of conscience and moral truth. They were “people just like all of us,” Koop and Schaeffer reminded. “We seem to be in danger of forgetting our seemingly unlimited capacities for evil, once boundaries to certain behavior are removed.”
By the last quarter of the century, life and death were treated as mere matters of choice. “The schizophrenic nature of our society became further evident as it became common practice for pediatricians to provide the maximum of resuscitative and supportive care in newborn intensive-care nurseries where premature infants were under their care — while obstetricians in the same medical centers were routinely destroying enormous numbers of unborn babies who were normal and frequently of larger size. Minors who could not legally purchase liquor and cigarettes could have an abortion-on-demand and without parental consent or knowledge.”
Schaeffer and Koop pointed to other examples of moral schizophrenia. Disabled persons were given new access to facilities and services in the name of human rights, while preborn infants diagnosed with the same disabilities were often aborted — with the advice that it would be “wrong” to bring such a baby into the world.
Long before the discovery of stem cells and calls for the use of human embryos for such experimentation, Schaeffer and Koop warned of attacks upon human life at its earliest stage. “Embryos ‘created’ in the biologist’s laboratory raise special questions because they have the potential for growth and development if planted in the womb. The disposal of these live embryos is a cause for ethical and moral concern.”
They also saw the specter of infanticide and euthanasia. Infanticide, including what is now called “partial-birth abortion,” is murder, they argued. “Infanticide is being practiced right now in this country, and the saddest thing about this is that it is being carried on by the very segment of the medical profession which has always stood in the role of advocate for the lives of children.” Long before the formal acceptance of euthanasia in countries like the Netherlands, Koop and Schaeffer saw the rise of a “duty to die” argument used against the old, the very sick and the unproductive. They rejected euthanasia in the case of a “so-called vegetative existence” and warned all humanity that disaster awaited a society that lusted for a “beautiful death.”
“Abortion, infanticide, and euthanasia are not only questions for women and other relatives directly involved — nor are they the prerogatives of a few people who have thought through the wider ramifications,” they declared. “They are life-and-death issues that concern the whole human race equally and should be addressed as such.”
How did this happen? This embrace of an anti-human “humanism” could only be explained by the rejection of the Christian worldview. “Judeo-Christian teaching was never perfectly applied,” they acknowledged, “but it did lay a foundation for a high view of human life in concept and practice.” Through the inculcation of biblical values, “people viewed human life as unique — to be protected and loved — because each individual is made in the image of God.”
Two great enemies of truth were blamed for this loss of biblical truth — modern secularism and theological liberalism. The secularists insist on the imposition of a “humanism” that defines humanity in terms of productivity, arbitrary standards of beauty and health, and an inverted system of value. Theological liberalism, denying the truthfulness of the Bible, robs the church and the society of any solid authority. The biblical concept of humanity made in the image of God is treated as poetry rather than as truth. But, “if people are not made in the image of God, the pessimistic, realistic humanist is right: The human race is indeed an abnormal wart on the smooth face of a silent and meaningless universe.”
Everything else simply follows. “In this setting, abortion, infanticide, and euthanasia … are completely logical. Any person can be obliterated for what society at one moment thinks of as its own social or economic good.” Once human life and human dignity are devalued to this degree, recovery is extremely difficult — if not impossible.
The past 25 years has been a period of even more rapid technological and moral change. We now face threats to human dignity unimaginable just a quarter-century ago. We must now deal with the ethical challenges of embryo research, human cloning, the Human Genome Project and the rise of transhuman technologies. Even with many Christians aware and active on these issues, we are losing ground.
Francis Schaeffer and Everett Koop ended their book with a call for action. “If, in this last part of the twentieth century, the Christian community does not take a prolonged and vocal stand for the dignity of the individual and each person’s right to life — for the right of each person to be treated as created in the image of God, rather than as a collection of molecules with no unique value — we feel that as Christians we have failed the greatest moral test to be put before us in this century.”
In this new century, that warning is even more threatening and more urgent. The challenges of the 21st century are even greater than those faced in the century before. This should make us even more thankful for the prophetic witness of Francis Schaeffer and C. Everett Koop — and even more determined to contend for life. Humanity still stands on the brink of that abyss. –30– Adapted from the Crosswalk.com weblog of R. Albert Mohler Jr., president of Southern Baptist Theological Seminary in Louisville, Ky. Related Posts:
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