Name: The Collapse That Will Change A Generation
Uploaded: 2025-08-03T18:29:35.000Z
Duration: 24 min 6 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

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I have nothing against taxing the rich, but most people are so focused on taxing the rich that they are not paying attention how the government is ripping off the average American.

Literally, as you are watching this video, the government is ripping off every single taxpayer in the United States.

Past simple

Because if it wasn't for social security and the payroll tax, the average American should have retired with millions of dollars in their bank account.

They are supposed to be so rich that they wouldn't even need social security in the first place.

So here in this video, I am not going to simply throw some words.

What I will do is that I am going to give you the facts and the numbers, I will show you everything from A to Z, and you will judge by yourself, but I am going to make a very good disclaimer that this video is going to be painful to watch, because you will realize that you are paying so much in taxes and yet you get absolutely nothing in return.

And if the system was slightly designed in a different way, you supposed to be a multi-millionaire.

So if you are emotionally ready to find this out, then give this video a thumbs up and let's get right into it.

The point of social security is very simple and straightforward, today you are young and you can work, so you are going to pay taxes, so that when you get old, the government is going to take care of you.

But the government simply doesn't take care of you, you are going to pay taxes or a payroll tax for your entire adult life or the entire life that you can work and then that money will slowly be paying you back so that you won't end up in the streets.

That makes logical sense, that's the point of taxes in the first place, right?

It seems like the government is taking care of the poor person, of the average American so that he won't end up in the streets with no money left in his pockets at all.

But this system is rigged in the first place, this system is actually ripping off every single American.

Let me show you, you are paying 12.4% in payroll tax, that's like 6.2% that you pay and 6.2% that your employer is paying.

Some people might say, well, I am simply paying 6.2%, but when your employer offering that job for you, he is including the fact that he is supposed to pay you an extra 6.2% in payroll tax or supposed to pay on behalf of you to the government.

So that's already part of the income that you receive.

In total, out of that income that you receive every single month or every single year, 12.4% goes directly into the government for your payroll tax.

So assuming that you are making the average wage, which is $66,100, and if we tax that at 12.4%, every single year, you are paying a little over $8,000 in payroll tax.

Of course, your income doesn't stay still, it grows every single year.

So let's take the average number, 5% annually, your income rises.

By the time you are going to retire, which is let's say 44 years from now, let's assume that you finished college, you finished school, you went to college, you graduated, and you are 23 years old and you start working until the time that you retire.

When I'm recording this video, the retirement age is like 67 years old.

So you're going to work for the next 44 years and you will pay in taxes $1.3 million.

We did not include income tax, which is going to be significantly higher than this number.

This money that you pay, which is $1.2 million, is the amount of money that should directly go into making sure that you have a safety net when you retire.

Which means that you are supposed to get this money back at least if not more than that.

Because at any given time, there are far more people who are working than the number of people who are retiring.

So logically, you are supposed to get at least $1.2 million or $1,238,000 to be more precise.

But let's take a look at what's happening in reality.

In reality, if you take the social security right now, the average person makes around $23,000 in social security payments right now.

But you have to consider the fact that you're not going to live for an extra 44 years.

Because if you retire at the age of, let's say, 67, which is literally the retirement age in the United States right now, in the best case scenario, you are going to live until you're like 83 or 84 years old.

And if you actually make it until you're 84 years, that is fantastic.

The vast majority of people don't make it because if you take the average lifespan of an average American male in the United States, it's literally below 80.

But if you actually made it to 60, chances that you will make it to 80 are very high.

So the average person who is going to receive the social security will be receiving social security for the next 17 years when they retire.

But social security payments, just like your income, are being adjusted to inflation.

On average, they are being adjusted by 2.2% annually.

Some years, they increase them significantly when we have high inflation, such as the case in 2022.

So if we adjust it by 2.2%, and you will be receiving the social security for the next 17 years until you retire, you will get a total amount of $468,000.

And that is the first problem that I have with social security.

I end up paying $1.2 million, but I will be receiving $468,000.

And now imagine we have people who make $100,000, $200,000, and those people make or pay in payroll tax much more than the average person who makes $66,000.

So the more you make, the more taxes you pay, the more you're getting ripped off, which is actually absolutely insane if you think about it.

If we actually dig into those numbers, it gets significantly worse than this.

Because you have to understand that time has value.

The longer, the sooner you receive that money, the more advantage you can take out of that money.

So social security, when they receive your money, they do something with that money.

That money simply does not stay there in the social security account.

Most of the time, that money is being invested in the most secure assets out there.

And what is the most secure asset that we have?

US treasury bills, which on average, they get around 2.5% in interest.

So social security system is already using your money and making a profit on the money that you pay today and earning interest.

The money that they supposed to pay you should be significantly higher than $1.2 million, but in reality, you will just get less than half a million dollars.

So let's just consider the opportunity cost.

What if you took that money and you invested that money in the S&P 500?

If you receive that money, let's say that the government today will tell you that you have an option.

Either you will put your money into the social security, or here's an account where you will take 12.4% of that money and it will be invested in the S&P 500.

Now S&P 500 is the most safest investment in the stock market.

We are not going into some kind of individual stocks where stocks can rise by 15%, 20%, 100%, or in the case of Nvidia, where it can rise by what, 5000%.

You're not taking those kind of astronomical returns of some stocks that can actually go.

If you are a really great investor, if you are a professional investor, if you are part of our academy, yes, you can find such stocks and you will be making millions of dollars, but we are talking about the average person.

So instead of investing it into the social security, we assume that you will take the exact same amount, which is 12.4% of the average income and this money is going to be invested in the stock market for the next 44 years.

This number will be growing by 5% annually because that is the average wage.

So again, we are giving you the example of not somebody who is making like a few hundred thousand dollars, we are literally taking the average wage in the US, assuming that you will be getting 10% annually, which is historically what the S&P 500 has been doing over the last 50 to 70 years, that number will be growing to almost 12 million dollars.

Yes, this is the total interest that you will be receiving if you invest that money into the S&P 500 instead of investing it into the social security, because you will be getting around 10% annually.

But some people might say, wait a second, 10% is too much, let's be a bit more realistic.

What if the next 50 years are not going to be as great as the last 100 years?

In that scenario, let's take 7%, let's be a bit more pessimistic about it.

At the end of the tunnel, you will end up with 5 million dollars.

Yes, 5 million dollars of investments in your bank account if you invest the exact same amount of money into the S&P 500 instead of the social security.

If you end up with 5 million dollars, you don't have to cash out the entire 5 million dollars the moment you retire.

You can literally just cash out 10% of that money every single year and let it grow by itself after that.

So 10% out of 5 million dollars annually is like 500 thousand dollars.

Wait a second, wasn't like amount of money that they pay you throughout the total time that you receive your social security for 17 years is less than half a million dollars?

So in a single year, you will be receiving more from your investments in the S&P 500 than people who kept their money into the social security for 17 years.

One year more money than you would get in 17 years from social security.

Let's say that the next 100 years are going to be some of the worst years in the entire history of the stock market, where the US economy is not going to grow as much as it did in the last 100 years, where the growth is going to be half the growth that it was in the last 100 years.

Let's say that it's going to be simply 5%.

In that scenario, your investments are going to grow to a little over 3 million dollars.

Even in this scenario, if you withdraw just 10% out of your a little over 3 million dollars, you will end up annually with 300 thousand dollars, which is pretty good amount of money for you to retire every single year.

Even if you consider inflation, 300 thousand dollars is going to be a lot of money.

Again, we took the worst possible scenario, which is 5%.

If we take a much more realistic scenario, or the scenario where the S&P 500 has grown historically by 10%, you will end up with almost 12 million dollars.

And if you withdraw 10% of that, that's over a million dollars annually.

That's pretty much enough money for anybody to retire anywhere in the world, even if you live in some of the most expensive cities in the US.

And here is the best thing, you can pass down this amount of money to your children.

So not only that you will become a millionaire by the time you retire, even if you are on the average wage, your kids are going to be multi millionaires and they don't have to work another day in their entire lives.

Whereas if you are on social security, the moment you are gone, those extra social security paychecks that you did not receive throughout your entire life will not be given to your kids, they will not be given to anybody, they will simply become a property of the government and the government will use it on something that they consider is much better, like increasing their wages for example.

Do you see why social security is not actually the best system for us?