Injurious to financial health |

Injurious to financial health

The writer of the letter headlined “End FICA tax” should study history. “Financial self-reliance” did not end with the collapse of the banking industry in 1933 “caused by Federal Reserve manipulations.” Actually, thousands of banks failed but only after the stock market crash of 1929, leaving small investors destitute.

In 1933, President Roosevelt proposed creating the FDIC to provide federal government guarantee of deposits in the nation’s banking systems. “The savings of most working families and retired seniors” were actually wiped out as a result of the stock market crash and subsequent decade-long Depression.

Early in his first term, Roosevelt also introduced Social Security as a safety net to all citizens in their senior years. Social Security has continued through all these 70 years during which the writer claims “the FICA tax has completely destroyed the opportunity for low and middle income workers to get ahead financially … “

To the contrary, these 70 years have seen the greatest growth in history of the middle class, of the number of homeowners, of the enconomic and health conditions of retirees.

The writer should realize that digesting and regurgitating Bush’s financial pap is injurious to one’s economic health and wisdom.

Sam Bernstein

Nevada City

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