MSN Money has an article where they talk about it being unpatriotic to retire, you can read it by clicking here. I guess it really comes as no surprise to see things like this starting. The message being driven home is taking individual responsibility is bad, especially when it reduces the amount of money the government can suck out of you.

I have a totally different take on the Social (in)Security problem looming ahead of us. Let it “collapse” and be exposed as the ponzi scheme it really is.

How, you might ask?

First, everyone in this country should be saving and investing. Yeah, I know what you are thinking, “but, I can barely make ends meet, how can I save?” But, save and invest, you must. Even if Social Security were solvent and likely to stay that way, it is a very poor standard of living. After your working life, you deserve better than subsistence on a fixed income. You owe it to yourself and no matter what you think, no one but you is ever going to give it to you.

Yes, keep your W-2 job for as long as it makes sense. There are benefits like health insurance and such, but at some point you should be able to live on your investment income. That income, at least now, is not subject to social security or medicare taxes. Yes, that means your social security benefit will not be as large as it could be, but the return on your “investment” in social security is extremely poor. After taking inflation into account, you’d be better off stuffing the cash in your mattress because there is a chance at least some of the coins and bills would be collectors items after 30-40 years.

If only 10% of the current workforce were to start on a plan to be self-sustaining and living only on their investment income over a ten year period, the ponzi scheme would start to unravel and our economy would explode with economic activity not seen in a very long time.

I know what you are thinking, “What about the people receiving social security benefits? What happens to them if the social security taxes drop?” When that happens, Congress is forced to honor all those IOU slips euphemistically called the Social Security Trust Fund to pay the benefits.

“But, Congress won’t do that,” you might be saying. Yep, you are exactly right, they wouldn’t. They will lament about there not being enough people “investing” in social security to fund the current expenditures. Which will further expose the ponzi scheme because they will be forced to admit they are using the monies received from new investors to payoff the older ones.

Do I think any of this will happen? No, not really. At least not now. But, sooner or later, Atlas will shrug, and when he does, it will not be pretty.