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Politics : Just the Facts, Ma'am: A Compendium of Liberal Fiction -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (26771)	1/16/2005 6:48:38 PM
From: Orcastraiter	Read Replies (1) \| Respond to of 90947

While what you propose may be workable, I still see the transition costs as a problem. The only way to bridge that is with borrowing. I'd kind a like my government to stop borrowing. But beyond that, in the long run, I think we'd do better without any government run pension fund. It would probably, however, be a good idea to have some kind of government backing, along the lines of FDIC, to protect investors from fraudulent behavior or insolvency of account trustees/fund managers. But even with a privatized system we'd still have to have the government guarantee the funds against fraud and fiscal mismanagement. What happens to the system if you have a stock market crash or Bond market bubble? And how does inflation or deflation and the rise and fall of interest rates affect a bond mutual fund based system? I'm still not convinced that we should do anything with the current system beyond a modest tax increase or a modest reduction in benefits. Another idea that I have had which may or may not be a reasonable idea, is that the government could go into partnership with loan institutions or institute such a branch of government, where by government funds could be borrowed and repaid with interest. The loaning of money could also be targeted at projects that would stimulate the economy, or reduce our dependency on foreign oil. These loans would have adequate collateral to protect the capital. The interest earned would help soften the differentials between growing populations of SS recipients and shrinking numbers of taxpayers. Orca