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Politics : Formerly About Advanced Micro Devices

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To: Road Walker who wrote (329158)	3/16/2007 4:30:53 PM
From: TimF	Read Replies (1) of 1578891

Ah, so none of the tax decrease would go to profits. Probably not much of it, the payroll expense would stay the same with the higher payroll. At first some of that would go in to extra profits, but those who increased wages could keep the same profitability and have an advantage at hiring desirable employees. In any case if profit is increased, it means there is more reward for investment, and thus you tend to get more investment. It works perfectly as a social insurance program. Insurance is properly applied to pooling of risk. Social Security disability payments might properly fall under that category, but not payments of cash for people in their retirement. Also even if you consider living to be a risk you are insuring against and want to somehow pool, it still doesn't work that well. Give me all the money that I have contributed to social security so far, and drop the requirement that I continue to contribute and I can insure myself against the "risk" of living past 65 quite well. We've been through this. It's simple please pay attention... your ROI depends entirely on how long you live. Just like life insurance in reverse... you are better off if you live longer. ROI needs to be adjusted for inflation, and then compared against the ROI for other investments. In the future there will likely be very few retirees that SS provides a good ROI for, even if they have unusually long lives. That's true even without any reduction in future payouts, and future payouts probably will have to be reduced one way or the other. SS's retirement/age related portion isn't insurance, and it isn't an effective retirement investment. Its a income transfer program. Its like welfare except the requirement for receiving money from the program is age rather than low income. The disability portion, might be considered to be insurance.

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