Government Statistics and Lies

by Ron Paul

There has been a lot of talk in Washington recently about senior citizens, mostly about how various healthcare reform models would help or hurt them. But there is another critical issue that has quietly devastated seniors financially over the last few decades. It concerns how the cost of living is calculated. How does the administration justify not giving a cost of living increase to Social Security recipients this year?

According to the official Consumer Price Index calculation, life has gotten cheaper for the first time in decades. If the government can show statistically that the cost of living has gone down, not up, then they can make the case for not giving a cost of living increase to social security recipients. But does this match reality? Using older calculations of CPI, the cost of living has actually increased – by roughly 5 percent!

The CPI (Consumer Price Index) is a calculation based on the average price of a fixed basket of goods that was initially designed to help businesses adjust for inflation. The government eventually started using it to determine cost of living adjustments for entitlement programs. Couple that with politicians’ discovery that they could raid the social security trust fund to pay for new spending programs, and you have a perfect storm to deny seniors what they were promised, while hiding the true size of the deficit. For politicians, it is a win-win.

For seniors, it is a different story. Economist John Williams of Shadow Government Statistics has estimated that if the original methodology of CPI had not changed, Social Security checks would be nearly double what they are today. This represents a lot of money that politicians have been able to literally steal from seniors, to spend on their own wasteful programs. One example of how they do this is to substitute hamburger for steak, which lowers the average price of that basket of goods. But living on hamburger, or maybe dog food, instead of steak does not represent a constant standard of living. This renders the measurement virtually meaningless, even though politically it comes in very handy.

I have introduced legislation to keep politicians in Washington from ever raiding the Social Security trust fund again. HR 219 The Social Security Preservation Act would assure that all monies collected by the Social Security Trust Fund would only be used in payments to beneficiaries, or be placed in interest bearing certificates of deposit. This would at least stop the bleeding of the fund, and take away some incentive to tease and torture the numbers in order to give seniors the minimal amount. This would also cut off a source of funding for government growth, so it is not likely to get easy support from many politicians.

It is bad enough that Washington imposes high payroll taxes on American workers. The least Congress could do is use the tax dollars for their stated purpose. Instead, seniors will have a harder and harder time trying to survive on a fixed income in an economy based on variables and deception. For them, it is too late to start over. Today’s young people will be forced to pay into the system for years to come. The first step towards solving the impending crisis facing Social Security is to stop politicians from raiding the trust fund and to significantly cut federal government spending.

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6 Comments

  1. Perception says:

    The West is at the cross roads of worthwhile existence,or absolute decadence and decay.The few are now raping the many and thus we are all on the path to destruction.Once the parasite sucks the last vestiges of life from the host,then the whole system fails.

    Real weath exists in the minds and aspirations of your people.You cannot monetorise trust,repect,truth or integrity.

    The West has lost the plot and our leaders like Obama,Brown etc,betray us all.

  2. John S. Carrio says:

    This has to be the email forward of the year! Please take a few minutes to read and absorb just what this woman had to say, and then hopefully everyone will pass it to their entire mailing list, and theirs to theirs until it circles the nation! Time is short and arrogance, stupidity and ignorance abound…………..

    The following letter read on Glenn Beck’s show, is rapidly circulating around the country. Americans everywhere identify with this 53-year-old woman. She has given us a voice. Once you read this, you will want to forward it to all of your friends…

    GLENN BECK: I got a letter from a woman in Arizona . She writes an open letter to our nation’s leadership:

    “I am a home grown American citizen, 53, registered Democrat all my life. Before the last presidential election I registered as a Republican because I no longer felt the Democratic Party represents my views or works to pursue issues important to me. Now I no longer feel the Republican Party represents my views or works to pursue issues important to me. The fact is I no longer feel any political party or representative in Washington represents my views or works to pursue the issues important to me. Instead, we are burdened with Congressional Dukes and Duchesses who think they know better than the citizens they are supposed to represent.

    There must be someone. Please tell me who you are. Please stand up and tell me that you are there and that you’re willing to fight for our Constitution as it was written. Please stand up now.
    You might ask yourself what my views and issues are that I would feel so horribly disenfranchised by both major political parties. What kind of nut-job am I? Well, these briefly are the views and issues for which I seek representation:

    One, illegal immigration. I want you to stop coddling illegal immigrants and secure our borders. Close the underground tunnels. Stop the violence and the trafficking in drugs and people. No amnesty, not again. Been there, done that, no resolution. P.S., I’m not a racist. This is not to be confused with legal immigration.

    Two, the STIMULUS bill. I want it repealed and I want no further funding supplied to it. We told you No, but you did it anyway. I want the remaining unfunded 95% repealed. Freeze, repeal.

    Three: Czars. I want the circumvention of our constitutional checks and balances stopped immediately. Fire the czars. No more czars. Government officials answer to the process, not to the president. Stop trampling on our Constitution, and honor it.

    Four, cap and trade. The debate on global warming is not over. There are many conflicting opinions and it is too soon for this radical legislation. Quit throwing our nation into politically-correct quicksand.

    Five, universal healthcare. I will not be rushed into another expensive decision that will burden me, my children, and grandchildren. Don’t you dare try to pass this in the middle of the night without even reading it. Slow down! Fix only what is broken — we have the best health care system in the world — and test any new program in one or two states first.

    Six, growing government control. I want states rights and sovereignty fully restored. I want less government in my life, not more. More is not better! Shrink it down. Mind your own business. You have enough to take care of with your real [Constitutional] obligations. Why don’t you start there.

    Seven, ACORN. I do not want ACORN and its affiliates in charge of our 2010 census. I want them investigated. I also do not want mandatory escrow fees contributed to them every time on every real estate deal that closes — how did they pull that one off? Stop the funding to ACORN and its affiliates pending impartial audits and investigations. I do not trust them with taking the census with our taxpayer money. I don’t trust them with any of our taxpayer money. Face up to the allegations against them and get it resolved before taxpayers get any more involved with them. If it walks like a duck and talks like a duck, hello. Stop protecting your political buddies. You work for us, the people. Investigate.

    Eight, redistribution of wealth. No, no, no. I work for my money. It is mine. I have always worked for people with more money than I have because they gave me jobs — and that is the only redistribution of wealth that I will support. I never got a job from a poor person! Why do you want me to hate my employers? And what do you have against shareholders making a profit?

    Nine, charitable contributions. Although I never got a job from a poor person, I have helped many in need. Charity belongs in our local communities, where we know our needs best and can use our local talent and our local resources. Butt out, please. We want to do it ourselves.

    Ten, corporate bailouts. Knock it off. Every company must sink or swim like the rest of us. If there are hard times ahead, we’ll be better off just getting into it and letting the strong survive. Quick and painful. (Have you ever ripped off a Band-Aid?) We will pull together. Great things happen in America under great hardship. Give us the chance to innovate. We cannot disappoint you more than you have disappointed us.

    Eleven, transparency and accountability. How about it? No, really, how about it? Let’s have it. Let’s say we give the buzzwords a rest and have some straight honest talk. Please stop trying to manipulate and appease me with clever wording. I am not the idiot you obviously take me for. Stop sneaking around and meeting in back rooms making deals with your friends. It will only be a prelude to your criminal investigation. Stop hiding things from me.

    Twelve, unprecedented quick spending. Stop it now.
    Take a breath. Listen to the people. Slow down and get some input from nonpoliticians and experts on the subject. Stop making everything an emergency. Stop speed-reading our bills into law. I am not an activist. I am not a community organizer. Nor am I a terrorist, a militant or a violent person. I am a parent and a grandparent. I work. I’m busy. I am busy, and I am tired. I thought we elected competent people to take care of the business of government so that we could work, raise our families, pay our bills, have a little recreation, complain about taxes, endure our hardships, pursue our personal goals, cut our lawn, wash our cars on the weekends and be responsible contributing members of society and teach our children to be the same all while living in the home of the free and land of the brave.

    I entrusted you with upholding the Constitution. I believed in the checks and balances to keep from getting far off course. What happened? You are very far off course. Do you really think I find humor in the hiring of a speed reader to unintelligently ramble all through a bill that you signed into law without knowing what it contained? I do not.
    It is a mockery of the responsibility I have entrusted to you. It is a slap in the face. I am not laughing at your arrogance. Why is it that I feel as if you would not trust me to make a single decision about my own life and how I would live it but you should expect that I should trust you with the debt that you have laid on all of us and our children. We did not want the TARP bill. We said no. We would repeal it if we could. I am sure that we still cannot. There is needless urgency and recklessness in all of your recent spending of our tax dollars.

    From my perspective, it seems that all of you have gone insane. I also know that I am far from alone in these feelings. Do you honestly feel that your current pursuits have merit to patriotic Americans? We want it to stop. We want to put the brakes on everything that is being rushed by us and forced upon us. We want our voice back. You have forced us to put our lives on hold to straighten out the mess that you are making. We will have to give up our vacations, our time spent with our children, any relaxation time we may have had and money we cannot afford to spend on bringing our concerns to Washington . Our president often knows all the right buzzwords like unsustainable. Well, no kidding. How many tens of thousands of dollars did the focus group cost to come up with that word? We don’t want your overpriced words. Stop treating us like we’re morons.

    We want all of you to stop focusing on your reelection and do the job we want done, not the job you want done or the job your party wants done. You work for us and at this rate I guarantee you not for long because we are coming. We will be heard and we will be represented.. You think we’re so busy with our lives that we will never come for you? We are the formerly silent majority, all of us who quietly work, pay taxes, obey the law, vote, save money, keep our noses to the grindstone… and we are now looking at you.
    You have awakened us, the patriotic freedom spirit so strong and so powerful that it had been sleeping too long. You have pushed us too far. Our numbers are great. They may surprise you. For every one of us who will be there, there will be hundreds more that could not come. Unlike you, we have their trust. We will represent them honestly, rest assured. They will be at the polls on voting day to usher you out of office.
    We have cancelled vacations. We will use our last few dollars saved. We will find the representation among us and a grassroots campaign will flourish. We didn’t ask for this fight. But the gloves are coming off. We do not come in violence, but we are angry. You will represent us or you will be replaced with someone who will. There are candidates among us who will rise like a Phoenix from the ashes that you have made of our constitution.

    Democrat, Republican, independent, libertarian. Understand this. We don’t care. Political parties are meaningless to us Patriotic Americans are willing to do right by us and our Constitution, and that is all that matters to us now. We are going to fire all of you who abuse power and seek more. It is not your power. It is ours and we want it back. We entrusted you with it and you abused it. You are dishonorable. You are dishonest. As Americans we are ashamed of you. You have brought shame to us. If you are not representing the wants and needs of your constituency loudly and consistently, in spite of the objections of your party, you will be fired. Did you hear? We no longer care about your political parties. You need to be loyal to us, not to them.. Because we will get you fired and they will not save you.

    If you do or can represent me, my issues, my views, please stand up. Make your identity known. You need to make some noise about it. Speak up. I need to know who you are. If you do not speak up, you will be herded out with the rest of the sheep and we will replace the whole damn congress if need be one by one. We are coming. Are we coming for you? Who do you represent? What do you represent? Listen. Because we are coming. We the people are coming.”

    • Jones says:

      Hi, nice letter and most people would agree with you in several issues you are mentioning. Perhaps even in the traditional parties.

      But unless real actions that benefit the population follow any of these elections and proposals the problems will not get solved.

      What I am most tired of is the serial repeat of getting elected with good ideas, and then those ideas cannot be implemented.

      And I don’t like pointing fingers at somebody on every little situation just because is from the ‘enemy party’, because there might be honest people there, just like there has to be some great people that do not belong to any party.

      Example: the idea of keeping clean the environment is a good one, it should open new jobs too; the idea of reforming what is wrong with the health system is also good, because each one of us has encountered difficulties that are critical to you or your family and turned out to be unfair or just plain wrong; most people want to enjoy the freedom of getting to places via your own car, but when a car become dysfunctional too fast and too expensive (let’s say that for ‘magical reasons’) you realize the importance of safe efficient public transportation that will also keep many jobs home, and wonder why that option is not allowed to happen, which makes you wonder about the magic of new cars breaking and having to look for old ones or even set up an updated version of the old west public transportation. For which you still need a legal permit and depend on the government.

      So having good ideas happens frequently, that are also much needed and easily justified as well, but the problem of implementing them is the ‘challenge’.

      The government seems busy fighting each other, polishing their party ideals, and looks like forgot the early reason to be there.

      Maybe is because that reason has changed, somehow. Or because having high tech communication sets up a false reality and makes it look like is in efficient ‘auto pilot’ mode.

      All these happening is making the public feel like we are not wanted, we are in the leadership’s way, and it really does not matter what good citizen and hard working and honest person you are, or how educated you are. This last is a worst case: too disrespectful of the real and valuable education and money invested in it. What seems to be wanted from this last group is that you have to mirror the image of a smiley and drooling wolf to be respected.

      So change is sought, I wonder if it will happen.

  3. Jackson says:

    See: “Fall of the Republic” http://www.youtube.com/watch?v=VebOTc-7shU I’m not a real fan of Alex Jones,but this has very credible commentary and is executed brilliantly.There is no hype and is a serious expose of the debacle we are in now.

  4. Mladen says:

    Well, inflation is something which looks like as not being tracked correctly in States for certain, however according to many sources i.e. Cost of living in United States, US has among highest purchasing power in the world. So people from US should stop complaining.. and realize that 10% of unemployment is much lower than 20% in Spain or 23% in Serbia….

  5. Jackson says:

    A Govt big enough to satisfy most of your needs,is powerful enough to take everything you have.They are doing it now!

    Part of this Govt is the US Federal Reserve.They are the unelected Govt and we are fast approaching an era not unlike the middle ages, whereby the masses owned no land or capital and only worked for their masters for the right just to exist.

    They are using the ruse of Global Warming/CO2 pollution to achieve their aims.CO2 levels have been 18 times greater than present day concentrations and the earth has experienced ice ages.Where are the long term scientific studies?

    It is totally immoral and unjust.We must fight this to the bitter end.



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