Counties Opt Out of Social Security?
{{#rendered}} {{/rendered}}This is a rush transcript from "Glenn Beck," October 28, 2009. This copy may not be in its final form and may be updated.
BECK: So now I just told you here the problem - yes, government-run health care and the solution. Well, I'll drive down here in the great state of Texas.
Rick Gornto - he is the designer of the Galveston Plan - this is not health care. This was crazy social security plan - risky scheme, sounds to me. Galveston County, Texas. Hello, sir. How are you?
{{#rendered}} {{/rendered}}RICK GORNTO, DESIGNER OF THE GALVESTON PLAN: Hi. How are you this afternoon?
BECK: You came up with this idea back in the 1980s, right?
GORNTO: Yes, sir.
{{#rendered}} {{/rendered}}BECK: And the risky scheme was, let people opt out of social security and come into a privately-run - what do you call it - retirement plan?
GORNTO: Retirement plan.
BECK: Yes.
{{#rendered}} {{/rendered}}GORNTO: Yes.
BECK: How insolvent is that right now?
GORNTO: It's very solvent. The funds are protected by the insurance companies that they're being held by, and audited and regulated by 50 insurance regulators throughout 50 states in the U.S.
{{#rendered}} {{/rendered}}BECK: No, no, no, but see - I mean, the government is running one that is much, much better, and it is wildly insolvent. Oh, whoa, look at that. Wait a minute. Hang on just a second. If you made $17,000 a year in social security, you get $683 back, but in your plan, you get over $1,000.
How about $75,000 a year? You get $4,500 back every month, and social security is only $1,645. Yes, but again, theirs is in a lockbox. Yours is insolvent, right?
GORNTO: No, it is not insolvent. In fact, the reason they got into the program in the first place was a desire to take personal ownership of their account versus being in social security, which is a promise to pay, if it's there, and depending on what benefits they decide to give in any given year.
{{#rendered}} {{/rendered}}BECK: How many members of Congress or anybody in government come down to study this and say, "Whoa, whoa, this sounds like a really good idea here"? How many people have come down from Washington to study this?
GORNTO: The GAO has sent people down in the late '80s or early '90s. Social security has done a study on this. And then, we've testified to the House - congressional financial committee a couple of times as well. So they are fully aware of this program.
BECK: But they're not going to - they're going to stick with their program?
{{#rendered}} {{/rendered}}GORNTO: You know, it's - I think that this issue of privatization versus public option that you're talking about is really more of a political issue rather than an economic issue.
BECK: Whoa, whoa, whoa, whoa. Crazy man on TV. Now, hang on just a second. Let me explain something. When somebody takes money from a group of people and they take that money. And instead of investing it, they take it and they pay the old investors - that's called a Ponzi scheme.
That is exactly what Bernie Madoff went to jail for and those in Washington are not going to jail for. Forget I said anything. We'll be back in just a second. Thank you, sir.
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