PRESIDENT GEORGE W. BUSH Message Board

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Politics : PRESIDENT GEORGE W. BUSH

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To: DuckTapeSunroof who wrote (672412)	2/16/2005 3:19:51 PM
From: Peter Dierks	Read Replies (1) of 769667

You may be correct. Regardless of whether SS and MC are each predicted to consume over 50% of the federal budget or 75% together, it is a huge difference between where we are now and that place. Even if it used base line modeling and government receipts grow faster, it is still a huge amount of money. I would offer that a wealth redistribution system to benefit the older people who wish not to work is not going to sell to the younger workers forever. As a higher percentage of people are familiar with defined contribution plans, it will be the baseline we will compare SS to. China changed their retirement model through draconian regulation. They used to have many kids and kill many females to ensure that parents had many working children to support them in old age. The problem is that as population explodes to unsustainable levels it puts the whole economy in decline. The root is that they could not produce enough food. They had a supply vs. demand imbalance brewing. The Chinese solution was to strictly enforce one child per family. It threw the economy into an imbalance of working / retired and caused short term pains. By now, I suspect it has stabilized enough to be sustainable. Back to the US problem. When SS was invented, it was modeled on the most successful retirement plans of the day. Have we not learned anything in the last forty years? If you owned a business today, would you set it up with a defined benefit plan (with unlimited potential liability and unpredictable costs) or a defined contribution plan (with defined liability and costs)? DC plans will leave some people destitute. DB plans have left some businesses destitute (can you say Steel?). SS leaves some people nearly destitute.

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