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Politics : A US National Health Care System? -- Ignore unavailable to you. Want to Upgrade?

To: Lane3 who wrote (6165)	2/17/2009 2:16:16 PM
From: i-node	Read Replies (1) \| Respond to of 42652

>>> The only way to "fix" SS is to reduce future benefits. Actually, increasing the earnings (as with partial privatization) could also lead to a fix. But probably, it is going to require an "all of the above" approach -- increased taxes, reduced benefits, increased rate of return. What WILL NOT solve it is the continuation of the "ponzi scheme" approach of having current workers fund the benefits of current retirees. They should start with eliminating the use of cash basis accounting, putting the system on accrual accounting, so that people can see just how serious the problem is. 3-4 years ago when I would discuss this topic on these boards people would argue that we have a surplus in SS. Today, they have started to understand that we don't and we haven't had, if you define surplus in a reasonable manner. I believe the first step in solving the problem is making people aware of it. Had Bush done so, he might have gotten his legislation through.

To: Lane3 who wrote (6165)	2/17/2009 2:16:27 PM
From: TimF	Respond to of 42652

As for the investment idea, that must have been promoted originally before investment went in the tank. It seems like a joke in this climate. Politically it probably is. If you ignore political considerations (which you never can for such things, so this is an exercise is unrealistic hypotheticals) now probably wouldn't be a bad time. You get better long run returns if you invest in a slump than if you invest in a boom.

To: Lane3 who wrote (6165)	2/17/2009 7:36:15 PM
From: Mary Cluney	Read Replies (2) \| Respond to of 42652

<<<Increasing the retirement age would seem the least worst way to do that.>>> I agree with you. Increasing the retirement age does not seem very disruptive. However that may not even be needed. 75% of the shortfall in the projected SS payout in 2032 could be eliminated by lifting the cap on the payroll tax. The rest of the short fall could be eliminated forever if the tax rate were increased by .6 percent. The alternative would be to privatise the system and just eliminate SS.