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"The ROI sucks" First, it's not an investment. It is a pay-as-you-go retirement plan. Current contributors pay for current retirees, the disabled, and widows and dependents. The average recipient has gotten an amount equal to all his contributions within 3 and 1/2 years of retirement. Because of its accelerated progressivity, low wage earners (those less likely to voluntarily save for retirement) actually receive a high "ROI". Second, the pyramid problem is phony. Yes, there are fewer earners per retiree now and in the future, but this is a very simplistic and false way of saying that there is a problem. However, because of their productivity, the payers still "over-contribute" to the payout causing a surplus. The surplus is borrowed to run the rest of the government since we don't dare pay for it out of reduced taxation which hides the true cost of government. One day, the notes will have to be paid back. What * is doing is refinancing that debt by adding more debt. If you simply raise the limit on earnings subject to the tax, any long term problem goes away. SS shouldn't be the only retirement plan one has. Still, for one third of all retirees, that all they have. If what looks like is proposed goes through, a trillion $ has to be borrowed to make up for the $ that is skimmed off to pay current and future retirees. Do you think people will voluntarily save in a prudent way to provide for retirement?
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