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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (215011)	1/15/2005 5:12:44 PM
From: RetiredNow	Read Replies (2) \| Respond to of 1573714

It's not, you idiot. That's the "transition cost" everyone is talking about. My God, quit spouting off and pay attention. Neither you nor I have enough information to answer this question. The $2 trillion "transition cost" is what is required to continue paying benefits to current retirees. However, the people who are contributing today would have their benefits reduced. So in order for either of us to answer the question of how much will Bush's program cost, we need to know exactly how much benefits will be reduced overall. Then we take the PV of that reduction to bring it back to today's dollars. Then we compare it to the $2 trillion price tag. If the reduction is more than $2 trillion, then this plan is actually a very good deal for the social security program. If it is less than $2 trillion, then we know that Bush's plan is a bad deal for the program. Neither you nor I can answer that question right now, because we don't have enough information. You are calling me an idiot, but I think it is clear to anyone who knows finance that the ignorant one here is you.