Eight Facts About Social Security

Discussion in 'Economy' started by Toro, May 11, 2011.

  1. Toro
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    Toro Diamond Member

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    Personally, I would like to see SS be turned into a real pension fund that invests in stocks, bonds, real estate, etc., as well as the government giving me the option to invest my savings on my own if I so choose. But until that happens ...

    Eight facts and three thoughts about Social Security - Ezra Klein - The Washington Post
     
  2. Mr. H.
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    Mr. H. Diamond Member

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    Even as a pension fund, it would ultimately come up short.
     
  3. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    Klein mentions the fact that people are living longer (#7) but then shoots down the idea that the returement age should be raised. The truth is we can't afford to pay SS for 20-30 years per individual. While I'd agree we should raise the ceiling for SS taxes, he seems to be saying the ceiling should be unlimited. Typical response from a democrat, make the rich pay for it. Do these guys understand the story of the goose that lays the golden eggs? When are they going to understand the top 1% simply cannot foot the bill for the rest of us? The ceiling should be raised, and tied to an index of wages and prices, but not unlimited. That kind of tax increase, which hits people making over $106,800, would be devastatring to our economy.

    We are already paying out more money in SS than we take in, and it's going to worsen as more and more boomers retire. That lockbox we have for SS that has 2.5 trillion in it? That is all US Treasuries, IOW IOUs. When SSA cashes those things in to make payments that means the US Treasury has to borrow more money. Pols blow it off saying it's okay for now, but that's total BS. The truth is they ain't got the courage to face the issue.
     
  4. Norman
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    Norman Gold Member

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    9) Social security can indeed create a free cake.
     
  5. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    9) SS makes Bernie Madoff look like Mother Theresa.
     
  6. xsited1
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    xsited1 Agent P

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    I find this highly amusing:

    The government forces people to pay into a huge Ponzi scheme in the hopes that they'll get back a tiny return on their "investment" (taken at gunpoint) after a few decades instead of allowing them to keep their own money and save it for themselves. Then the government comes up with some bogus statistic that says without Social Security, nearly half of all seniors would be under the poverty line. Nice.
     
  7. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    It's like most government programs: they make the problem worse and then act like an arsonist who claims he is there to help put out the fire (he started).
     
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  8. Toro
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    Toro Diamond Member

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    The point of the article is that it isn't a ponzi scheme. It's not how I would design a pension plan but it isn't insolvent either.

    People generally undersave. I spent some time as a stockbroker. I was shocked at how little many people had. I had many meetings with couples who were in their 50s who had maybe $50k, and many had less.

    As for the poverty line, whether or not it is an accurate reflection of poverty, clearly seniors rely heavily on it. That's why it is the third rail of politics. Given that people undersave, seniors would be poorer without SS.
     
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    Last edited: May 11, 2011
  9. xsited1
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    xsited1 Agent P

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    Of course people undersave when their paycheck is pilfered by the government. And if people knew they didn't have a safety net like SS, they could use that extra money to save.

    You'd better believe Seniors rely heavily on SS because they've spent a lifetime putting money into it.

    I'm not anti-SS, but it is a Ponzi scheme and should be radically changed. The 'opt-out' option should've have been put in from the get-go.
     
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  10. Two Thumbs
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    Two Thumbs Platinum Member

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    SS was based on the idea that 2 people got married, had 4 kids and saved a little. Once the kids got older they would be able to help mom and dad in thier senior years.

    Now we have 2 people, maybe getting married, maybe not, haveing 2 kids, saving nothing cuz they had to keep up with the Jonses, and the kids can't pitch in b/c somebody learned there's a ton of money to be made off the government and insurance companies.

    ideas from the 195o's [?] need to be revamped. But if the GOP does it, they want to kill granny.
     

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