...RE: "The argument that the consumer always ultimately pays is just plain false."
A rather remarkable statement after explaining how lower costs may be passed on to consumers in lower priced goods and services....
The important word there was “always.” I gave you three examples. In one example the consumer gets nothing, in the other two, only a part. How much or little they get is determined by how competitive is the market.
….That's just plain hilarious. Try running a screen for companies with a PE of 10. They account for less than 1% of publicly traded companies. Hardly an "average". Hop back on the turnip truck and try not to fall off this time.
It’s an example. Plug in any multiple you like.
The real issue with Social Security is not who and how the tax is assessed, but how the money collected is invested by the Government. The money is invested at a drastically negative rate of return, which is why the system will eventually go broke.
In essence, it's a pyramid scam, with the government acting as a middle man to siphon off the profits. 100 people pay, so 10 people can retire, and the government spends everything that's left over.
If think of social security as an Individual Retirement Account – which you own - yes it’s a pyramid.
But it’s not.
Its retirement insurance.
If you were to require that every insurance company in the world start making annuity payments to their policy holders based on their current premiums paid to date, every company would immediately go broke.
If all bank depositors immediately withdrew their money, all banks would fail.
Looked at that way, banks and insurance companies are pyramid schemes.
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p.s.
…Even casualties from turnip truck accidents should be able to figure out that much.
Why on Earth would anyone who doesn't understand that ever get involved in anything that has to do with investing?
Don, my fingernail clippings know more about valuation than probably half the people who post on SI combined. However, if you wish to think I fell of a turnip truck, that’s your right. I certainly can't - online - prove to you I did not. Good Luck on your investments.
eom eod |
