Monday, March 07, 2005
Social Secuirity
Now to speak about something near and dear to my heart...social security. From the guy who has none. And I'm not even talking about my lack of a social life. Everyone's talking about Social Security reform. So I thought I'd weigh in. Because my opinion is more important than everyone's.
The system is broken. Not like there are problems. It is fatally, intrinsically flawed. Why anyone would think that a government sponsored pyramid scheme would have better chances of working then an efficient con artist's is the only news to me. So now that we're in agreement, what can be done? I'm not in favor of the President's solution. Too risky, thereby missing the point of social SECURITY.
Rather, I advocate private accounts, but with 100% of the funds invested in low risk investments through a government investment arm. Keep in mind that social security is not supposed to be your pension. It is a backup, a last ditch fund to assure that you have enough for the barest essentials after you can no longer work due to physical or mental incapacity. Otherwise, if you can still work, and you don't have the money to live, you can always get another job. Each citizen would have the funds accumulated throughout their own lifetime tracked independently, so in essence they are funding their own retirement, not allowing the government to dip into their savings to pay its budget. After reaching a certain amount, say $1,000,000, all excess funds contributed would go into a general pool to fund the social security of the lowest income brackets.
Most importantly, the government should do to encourage more 401k and IRA activity, which other than active investments, should be the primary source of retirement funds. These would be able to fund the lifestyle activities of retirees, who could invest them according to the risks and rewards they desire.
The system is broken. Not like there are problems. It is fatally, intrinsically flawed. Why anyone would think that a government sponsored pyramid scheme would have better chances of working then an efficient con artist's is the only news to me. So now that we're in agreement, what can be done? I'm not in favor of the President's solution. Too risky, thereby missing the point of social SECURITY.
Rather, I advocate private accounts, but with 100% of the funds invested in low risk investments through a government investment arm. Keep in mind that social security is not supposed to be your pension. It is a backup, a last ditch fund to assure that you have enough for the barest essentials after you can no longer work due to physical or mental incapacity. Otherwise, if you can still work, and you don't have the money to live, you can always get another job. Each citizen would have the funds accumulated throughout their own lifetime tracked independently, so in essence they are funding their own retirement, not allowing the government to dip into their savings to pay its budget. After reaching a certain amount, say $1,000,000, all excess funds contributed would go into a general pool to fund the social security of the lowest income brackets.
Most importantly, the government should do to encourage more 401k and IRA activity, which other than active investments, should be the primary source of retirement funds. These would be able to fund the lifestyle activities of retirees, who could invest them according to the risks and rewards they desire.
# posted by Josh : Monday, March 07, 2005
