Hindsight: Privatization of Social Security

[DarkReign]

For all the economic gurus (me not being one at all)...

Bush once had a plan to privatize SS, wherein you'd take the money as a private citizen and invest it into the stock market (in an attempt to alleviate the promised debt from the government). If wrong, please correct that.

My question is, what would have been the impact had this gone through, seeing as the market went freefall?

Is the country better or worse off? The country, not its citizens (which would be worse off by a fair margin, not only does your 401k lose 20-40%, so does your SS account).

Pros and cons would be cool.

[FreeMason]

Give us an option to opt out completely.
Give us an option to opt out completely.
Give us an option to opt out completely.
Give us an option to opt out completely.
Give us an option to opt out completely.Give us an option to opt out completely.
Give us an option to opt out completely.Give us an option to opt out completely.
Give us an option to opt out completely.
Give us an option to opt out completely.
Give us an option to opt out completely.
Give us an option to opt out completely.Give us an option to opt out completely.Give us an option to opt out completely.
Give us an option to opt out completely.

[SnakeBoy]

Give us an option to opt out completely.

Won't work.

[SnakeBoy]

My question is, what would have been the impact had this gone through, seeing as the market went freefall?


I don't remember the details but I think he had an age limit (48 or so) where the money would be moved out of the market. As well as restrictions on what it could be invested in.

There wouldn't be any impact now since no one near retirement would have had the money in te market.

Keep in mind that alot of people will make a shitload of money off of this crash in the long term. I'm hoping to be one of them, just waiting for the bottom.

[LnGrrrR]

I'm down with the 'opt out', patenalistic libertarian model.

[SnakeBoy]

I'm down with the 'opt out', patenalistic libertarian model.

If you can opt out then the system will go broke. You have to keep putting your money into it until it goes broke.

[LnGrrrR]

If you can opt out then the system will go broke. You have to keep putting your money into it until it goes broke.

That's why I "opted in" to the military. 10 more years and I'll have my retirement... assuming Congress doesn't vote it away from me.

I've got a few eggs in different baskets... they can't take them ALL away... lol

[101A]

If you can opt out then the system will go broke. You have to keep putting your money into it until it goes broke.


Yeah, Ponzi schemes are only bad if the private sector is behind them.

[Twisted_Dawg]

Look at it this way:
The social security money your employer withholds from YOUR PAYCHECK
(7.65%) is YOUR MONEY that the employer matches (7.65%) to send to Social Security.

Social Security then takes the deposits, pays all the people on the program and invest the surplus in U.S. Goverment Securities paying a low return.

Now don't you think you have a right to decide where YOUR SHARE OF YOUR MONEY is invested? If I had invested all of my own withholdings since I was 16 in the stock market, I would be light years ahead. The recent downturn would have put a hit on it, but nonetheless, I would have been way ahead.

If you don't agree that you should have the right to decide where to invest YOUR MONEY, then you probably have no problem with the Federal Government telling you where to invest your 401K.

The only caveat: That when a person turns 50, only 50% of his/her withholdings could be put in the stockmarket; at 55 only 45%; at 60 only 40%.

At the very least, the government should give workers the option to allow whether they want the governemnt invest their share, or allow it to be invested in private capital.

[Twisted_Dawg]

Won't work.

It could work, but it will NEVER happen as that takes away too much power (money) from the U.S. Government.

[Wild Cobra]

It could work, but it will NEVER happen as that takes away too much power (money) from the U.S. Government.
That's the key right there, but liberals are blind to the fact.

Privatization means less government power over the people.

Tax system is power. Turning to the Fair Tax would eliminate that power too.

Why do liberals, who claim to love freedom, want the government to manipulate our lives cradle to grave?

[SnakeBoy]

Yeah, Ponzi schemes are only bad if the private sector is behind them.

To be fair, it was a great ponzi scheme. They just didn't know this was going to happen.

http://www.census.gov/cgi-bin/ipc/idbpyrs.pl?cty=US&out=d&ymax=300

Also keep that population pyramid in mind when they start talking about making healthcare cheaper. Old people are expensive. Instead of free healthcare it should be free cigarettes, would be a much cheaper solution.

[2centsworth]

For all the economic gurus (me not being one at all)...

Bush once had a plan to privatize SS, wherein you'd take the money as a private citizen and invest it into the stock market (in an attempt to alleviate the promised debt from the government). If wrong, please correct that.

My question is, what would have been the impact had this gone through, seeing as the market went freefall?

Is the country better or worse off? The country, not its citizens (which would be worse off by a fair margin, not only does your 401k lose 20-40%, so does your SS account).

Pros and cons would be cool.


If I could opt out why wouldn't I want to buy now. Key to investing is buying low and selling high.

As far as people 50 and over, I don't think they should ever been allowed to opt out and I've been pretty consistent about that, which means even before the market crash.

[balli]

Old people are expensive. Instead of free healthcare it should be free cigarettes, would be a much cheaper solution.

:lol

[SnakeBoy]

:lol

Well I meant it in jest so I'm glad you laughed. Little bit of truth to it though.

http://content.nejm.org/cgi/content/abstract/337/15/1052

[FreeMason]

Won't work.

It'll work for me.


I am willing to sacrifice my future social security checks to lessen the burden on my fellow Americans. :toast

[ClingingMars]

That's the key right there, but liberals are blind to the fact.

Privatization means less government power over the people.

Tax system is power. Turning to the Fair Tax would eliminate that power too.

Why do liberals, who claim to love freedom, want the government to manipulate our lives cradle to grave?

yup, the FairTax essentially wipes out the power of the IRS to bully people. but no one would want that...

[angrydude]

In hindsight it would have allowed us to take our money from one giant government pyramid scheme and put it into a giant corporate pyramid scheme.

Talk about rearranging deck chairs on the titanic.

[BradLohaus]

In hindsight it would have allowed us to take our money from one giant government pyramid scheme and put it into a giant corporate pyramid scheme.

Talk about rearranging deck chairs on the titanic.

FTW