Reply #47: (Short essay response) I think there should be a combination...

[originalpckelly]

I don't like the idea of risk in something which has to be dependable, but on the other hand individualizing each account will guarantee someone benefits.

The problem with social security is that the work force supporting those who are retiring is much smaller than when the program started. Then it was in the range of 10-15 workers for every retiree. Now it is 2-4 workers for every retiree. That either means the social security taxes for those still in the workforce must go up, the amount of benefits received by the retirees must go down, or some combination of the two.

However, if we individualize social security, and make someone contribute protected money which will be untouchable when they fall on hard luck before retiring, then it will accomplish the goal of social security: a safety net for America.

You see, everyone who lives long enough to retire, must deal with this problem. It is an inevitable problem, and something like that is not suited to the traditional model of insurance, which is to spread out the burden among the population. The burden upon the working population will be so high it will hurt the economy and reduce the amount of money people make to contribute to the trust fund.

People must save their own individual money. Now if someone is really lacking their might still be an insurance effect, but only for those people who are lacking.

This would dramatically reduce the social burden upon the working class.

There would still need to be a traditional insurance model for non-retirement related social security benefits, in other words there would still be disability insurance, because that is not a drastically changing number, it is a certain percentage of the workforce and will change with the size of the work force.

Now this whole individualization plan will include Medicare as well. Again because you have pay those costs inevitably.

So there you have it.

But there is a problem: how the hell do you transfer from one model of social security to the other without reducing the amount of money coming into the trust fund. Well, that is a question I still have to answer, but it will undoubtedly involve debt.

However, it should be noted that we are already going to be in deep deep debt because of social security, so we might as well take the plunge now to protect the future of the program.

I am still working on this idea, so please don't bite my head off. I really seriously don't want to fuck over seniors, in fact the only reason I am thinking about this is to help Social Security continue in this century.