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Politics : Formerly About Advanced Micro Devices
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To: Broken_Clock who wrote (920896)2/12/2016 9:39:35 PM
From: TimF  Read Replies (1) of 1576951
 
Even with 2008 you have a much better long run return on Wall Street (and there is no good reason a private retirement system has to be all in stocks) then you do from Social Security. Social Security has a negative return for current workers. Not negative for a few years or even a decade because of some downturn, negative for people just entering the workforce, and negative for people who've been working for decades.

The solution is too force Congress to quit blowing SS funds on wars and other useless money pits.

With the Social Security system as currently set up, any surplus funds have to go in to treasury securities. In other words the government lending money to itself. There isn't and can't be any real store of wealth there.

Which is not to say that better fiscal discipline would not be good for the future stability of the program. If the budget was balanced on the average (with modest deficits in bad times and modest surpluses in good times) or even if deficits were the norm but they where small enough that the federal debt as a percentage of GDP was at worst stable, and preferably went down, then it would be easier to borrow money later in order to spend it on retirees, and it might actually work out under those circumstances if it wasn't for the other entitlements.

But the other entitlements do exist, as do frequent large deficits and a large federal debt.
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