:: How to Achieve Real Security: For Your Family, for Your Country
It has been predicted that the West’s war against radical Islamists will last for decades, if not generations. The mission of radical Islamists is to create a global caliphate under which all nations will be subservient to political, fundamentalist Islam. This mission is fueled by extraordinarily wealthy Middle Eastern countries and individuals, bursting with the world’s vast petrodollars.
For free countries to prevail against this rapacious, totalitarian monster, they will need in the coming decades all the treasure they can possibly produce…for themselves and for their country…and then some.
How can average citizens help their country produce enough revenue to withstand the forces that would enslave them? And how can this be done without bankrupting all else that free societies offer their citizens who are blessed in so many other ways?
Easy. Let’s look to Americans and their families to see how they can provide trillions more in revenues to our federal government while earning more for themselves than they are currently capable of earning.
It is a sad commentary that so little attention is paid to strengthening the family unit in today’s warp-speed and dangerous world. The family is the basic building block of all civilizations yet today fewer and fewer Western women are having babies and, those who do, are shrinking in numbers.
In Europe the problem has become an unparalleled crisis as couples are not having enough babies even to replace themselves (minimum replacement is pegged at 2.1 babies per couple). In some European countries the rate of replacement has fallen to a genocidal 1.2, effectively cutting in half the populations of each ensuing generation. (It should be noted that birth rates of other less-educated and -wealthy groups, poised to overcome European cultures, are upwards of five times higher than Europe’s indigenous birth rate.)
As the leader of the free world in so many categories, the USA is presently just keeping its head above water birthing 2.1 babies per couple. The trend, however, appears headed lower. The question is what can be done about improving these downward spiraling demographics?
As this is primarily a problem of modern Western societies, the USA should lead the way in restoring the family to prominence and reverse the impending demographic and socio-economic disaster.
The Ownership Society Institute (OSI) believes it has the answer. Were women secure financially in staying home to rear their kids and grandkids, a big family and the joys of having one would not only become more attractive but possible. Unfortunately our laws, policies and economics are presently stacked up against the creation of big families, as many women are forced to join, and remain in, the work force.
What if we change the laws and policies to allow women to stay home to raise their children, never work a day in their entire lives and guarantee that they retire a millionaire? Sound crazy? Just stick with me a moment longer.
Politicians, the media and the public focus economic discussions almost exclusively on income taxes: raise taxes on the rich, or lower taxes on the rich. Candidates for President are exclusively focused on income taxes, e.g. the Fair and Flat Tax proposals and the income disparity issues. OSI wants to refocus attention to the real snake in the woodpile: payroll taxes.
OSI does not want to destroy Social Security, Disability and Medicare but merely change the way those worthy projects are financed. In the process, women will become financially emancipated, among many other benefits emanating from such a change. This is how it works.
Today 15.3% of the income of working Americans (up to $97,500) is taken by government as payroll taxes. The self-employed pay the entire 15.3% and employees in such companies split that cost with their employers. An average household earning $40,000 per year pays $6,000 each year in payroll taxes. After 40 years of paying the annual payroll tax of $6,000, the taxpayer has made a $240,000 investment. In return for the $240,000 lifetime investment, the government gives back to the taxpayer a $1,122 monthly retirement check and no nest egg to will to his kids. Under Medicare most old-age medical costs are also covered.
In case you haven’t figured it out yet, this is a raw deal.
Instead, under OSI’s Rise Up America plan the entire $240,000 is placed in a personal investment account and deposited weekly over a 40-year working life to grow into a $3.2 million nest egg, owned by the taxpayer.
This computation was made using the average rate of return experienced by the S&P 500 stock index (actually the 10% rate used in computing the $3.2 million is less than the 12.5% actual rate experienced in the last 25 40-year periods.) Just the income off that nest egg will generate a monthly retirement check of $27,000 ($3.2 million @ 10% divided by 12 months). Should the taxpayer decide at retirement to move out of stocks and invest in a savings account at, say 6%, then the monthly check would still be a whopping $16,000 per month.
