Quote:
Originally Posted by Guest
I think you may have missed the fact that it does not have be a dollar for dollar match of what was put in to be equitable.
The SS powers that be take the money and invest it, plus they have the contributions of the young paying in and the SS investing and add it all together as a source from which to pay out.
So if one want a comparison of paid in vs paid out the interest earned would have to be taken into account.
And like most corporate retirement accounts it probably earns more than the anticipated growth to benefit ratio. Many companies have dipped into to excess retirement reserves for that reason.....as has the federal government....without paying back what it took.....
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That's the problem, it's been depleted because it is a bad investment. Even if it makes 3%, which may not be accurate, it doesn't do any good if congress borrows from it. I do realize that right now, we have the baby boomers retiring and siphoning off a more than is coming in. Let's be honest, the whole process is very similar to a Ponzi scheme.
Instead of stating the obvious, that Social Security is threatening to derail, someone needs to take the idea seriously and come up with viable solutions. Privatizing part of it sounds feasible. But, only/ONLY if it is continuously audited. I don't buy the idea that the stock market could fail and ruin it. It would actually shore up the stock market with a steady flow of revenue. I am not saying that all of it should be privatized, but it wouldn't hurt to allow the option of having part of your money go to the Thrift Savings plan of something similar. There are a lot of benefits of this idea.