Well, I guess the politicians perceive a problem with using SSTF monies to purchase private sector hard assets. And since they have not officially ear-marked those surplus funds to be used specifically for some major infrastructure project that would greatly increase economic growth, they just slush it into govt debt securities and spend it on pet projects for their districts, or even worse, more entitlements that will have to be funded concurrent with existing SS benefits (pescription drug benefits, Clinton's failed attempt at universal medical coverage)
Ultimately, privatization of SS would be the ultimate goal... Personally, I think Milton Friedman, I believe, had the right idea. At birth the government would place $1,000 into an personal retirement account (or provide a one time tax credit for parents to do so)... Upon retirement, that $1,000, at an average interest rate of return, would be worth well into the millions.
But in the meantime... we can't just switch gears immediately from a public to a private social security system, unfortunately. And we've lost 8 crucial years due to those jokers who were residing at 1600 Penn, trying to figure out how to spend every dollar they take in.
Give it back.. have people put it into hard assets and let's get this ball rolling towards financial independence at retirement, and wealth creation that occurs along with it.
Regards,
Ron |
