Social Security – Not Your Dollars

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Almost everyone believes that Social Security is their money, as if it were a 401(k) or pension. No. There’s a huge difference.

 

Money is two things, a bill and dollars. See How I Use the Word Money. Who creates which, who owns which, who controls which determines why Social Security isn’t your money, as you’ve understood money before this. See Who Owns Money.

 

Let’s look at the difference between a 401(k) or pension and Social Security. First, the 401(k) or pension.

 

Your 401(k) or pension contains principal and interest. Principal is the money (bills and dollars) you put in. Interest is the money (bills and dollars) that came from other workers. Your 401(k) or pension money is made up of:

 

• Bills (beer bottles)

  • Government owns all of the bills

  • You control all of the bills

• Dollars (beer)

  • You control all of the dollars (principal and interest)

  • You own only those dollars that your labor created (principal)

  • The other dollars are owned by the workers whose labor created them (interest)

 

When you retire and take money out, you’ll take out principal, dollars you own, and interest, dollars you don’t own.

 

You control all of the dollars. You don’t own all of them. It’s the dollars that buy stuff.

 

Now to Social Security. See the picture below where it shows this in beer bottles and beer.

 

When Social Security is deposited into your account you may think you’re getting your money back. Not true.

 

While you were working (when your labor was creating dollars), a piece of your labor was taken from you by government and given to someone receiving Social Security. The money taken from you was made up of:

 

• Bills

  • Government owns all of the bills

  • You control all of the bills

• Dollars

  • You control all of the dollars

  • You own all of the dollars because your labor created them

 

When your money ended up in the Social Security recipient’s checking account it was made up of:

 

• Bills

  • Government owns all of the bills

  • The recipient controls all of the bills

• Dollars

  • The recipient controls all of the dollars

  • You own all of the dollars because your labor created them

 

You control none of the dollars. You own all of them. It’s the dollars that buy stuff.

 

Fast forward to you getting Social Security. A worker (their labor is creating dollars) has a piece of their labor taken by government and given to you. The money taken from the worker was made up of:

 

• Bills

  • Government owns all of the bills

  • The worker controls all of the bills

• Dollars

  • The worker controls all of the dollars

  • The worker owns all of the dollars because their labor created them

 

When the worker’s money ended up in your checking account it was made up of:

 

• Bills

  • Government owns all of the bills

  • You control all of the bills

• Dollars

  • You control all of the dollars

  • The worker owns all of the dollars because their labor created them

 

You control all of the dollars. You own none of them. It’s the dollars that buy stuff.

 

No one paying Social Security is investing anything. No one receiving Social Security is getting money from their investments. Simply put, Social Security is taking money containing dollars created and owned by a worker and giving those dollars to someone who didn’t create them and won’t own them.

 

That’s why your Social Security isn’t your dollars. You don’t own them. You only control them. You can spend them as you wish. When you spend them, you’re spending someone else’s dollars.

 

Just a fellow American