7 July 2002

With regard to corporate fraud, the Troy Record advised the “state to take over the reign” and “start steering” (7/5). But hold on! The state, in the person of Comptroller H. Carl McCall, has been steering. The state - sorry, Comptroller H. Carl McCall - having lost lots of pension fund money on bad investments, now wants to steer responsibility elsewhere. It’s not his fault. Worldcom or Enron is to blame. Yet, if you or I lost money on bad investments we’d simply lose money. That is how we are held accountable for our actions. When McCall loses lots of money on bad investments he holds others accountable. How nice. Lets make him Governor.

I notice McCall didn’t hold someone else responsible when the stock investments were doing well. Neither did the Record call for more regulation. Was it a different Worldcom when the stock shot up and many, including McCall, piled on to get a piece of that action?

Besides, Worldcom and Enron scams are small potatoes compared to your regulated government Social Security Trust Fund. Instead of hundreds of million or even billions, the Trust Fund is short trillions of dollars. In 1935, President Roosevelt promised the American people that the new Social Security Tax would be invested at 3 per cent interest, so that, by 1983, the tax could be ended and returns on the investments would guarantee a retirement income for all Americans. But reality is different. Around ’83 Social Security had hit its second fiscal crisis. The tax went up - not away. Instead of 1% on $3,000, we now pay close to 8% on $80,000. We now get reduced and delayed benefits that are taxed again. Social InSecurity has and will adversely affect many millions of people. This Ponzi scheme is kept afloat with inflationary monetary policy and higher taxes but still going bankrupt.

How many thousands of dollars have you and your employer sent to the SSA over the years? Each $1000 saved in 1936 would be worth $80 now thanks to state regulated money. Compare this to the stock market. Back in ’36 the DOW was at about $100. Last I looked the DOW is still around $10,000.  So instead of losing almost all your savings to state sponsored inflation and depending on Social InSecurity, each $1000 invested in the DOW then would be worth about $100,000 now.

Maybe you should not be so quick to have the state take the reigns and steer.