Well, in essence the Federal Government, by forcing us to pay high tax rates into the FICA system, IS FORCING the American public to save for retirement. A retirement that the government, and thus, future taxpayers, will have to finance from outlays, or deficit spending in the future.
Taking that money and placing it in personal saving accounts structurally protected until an individual's retirement, but mandated and supervised by the government, is a better, although not perfect, alternative.
Additionally, it will greatly assist in lowering the cost of capital for the private economy as this money is invested in private hard assets (debt, equity, real estate.. etc) than in government obligations that will require additional money in the future to be drawn from the private economy in order to finance them.
In my opinion, and in retrospect because even I didn't think this way 8 years ago, we have missed a golden opportunity to make a great proportion of the American public much more wealthy upon retirement they will be under the current system.
Regards,
Ron |
