Okay, expand on that.
Drop Social Security and Medicare and let seniors fend for themselves?
In some other thread, or this one, I asked for you opinion on SS since you are the only admitted financial guy.
Say you were looking at a portfolio of a company whose assets have risen every year for the last twenty. Their receipts exceed their expenditures by a wide margin. Their income is assured. Would you invest in such a company?
Well, according to the SS administration, that is the SS trust fund. Now maybe there is some super secret information that the SS administration isn't giving out but by what they publish SS isn't a problem.
I understand the question, but a private company and a federal program really can't be equated.
There are several tweaks that can made to Social Security that a private company simply can't do -- a private company can't manipulate its income whenever it wants -- so there is no reason for Social Security to go under. Yes, they will involve higher taxation (among other things), but there is simply no way in hell that DC is going to let Social Security fail. It's inevitable, and due in part to the demographic distortion the Baby Boomer population has created in our economy.
On that note, once enough of the Baby Boomer population has died off (nice pleasant thought there), there will be a legitimate argument for tightening back up and lowering those taxes.
This is going to happen, Social Security isn't going anywhere, and no amount of protest will stop it.
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