REGARDING Mr J Shackleton's remarks in "Tax system fails the needy" (Letters, February 3), nearly all people avoid the issue of the social security system, as it is said to be sacrosanct.

But I must show it down to its roots, because people must be ignorant not to see the following:

The money you pay in tax will not be invested, but it will be "loaned" to the shop owner's brother-in-law to buy a car, to his neighbour to go to university, to the local youth club to renovate its football area.

You will be paid, not from any returns or profits generated by your funds, but directly from contributions from new "investors" and if there aren't enough new "investors" your money will be cut.

No rational person could ever buy into this stupid scheme, yet that is exactly what social security is.

The payment on retirement "investments" is made by fresh premiums coming in, similar to what is known as pyramid selling. You try and set up a system like social security and you will be put in prison for fraud.

It is time to reject self sacrifice and promote self interest, only then can we have genuine retirement security from relying on your own mind and effort - not the dishonest promises of a parasitic, bankrupt government plan.

The only money a government has is the money it steals in taxes. It does not create or produce anything. John D Rockerfeller, James J Hill and J P Morgan are men who possessed a rare virtue - to create wealth on an enormous scale. They manufactured steel, produced oil, built railroads, etc.

Business giants like these dramatically solved the problem of production and poverty - the problem that has plagued mankind throughout its history, and will still plague impoverished, non-capitalist nations in the world.

Productivity makes human life possible. Capitalism, not socialism, is the only moral system in the world.

MATTHEW SOUTHWORTH, Scotland Bank Terrace, Blackburn.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.