Fool's Gold: Bush's Social Security Privatization Plan

[salin]

So, they are unrolling the details. Get this...

1) The government holds the $ and invests the $
2) The government KEEPS ALL of the original investment
3) The government KEEPS all earnings up to 3%
4) The only payout is the "earnings" ABOVE 3%; That is the difference between the earnings and 3%.
5) IF the account earns (not loses) at a rate of 3% or lower - you get NOTHING - NOT THE ORIGINAL INVESTMENT.

Now - lets look at the net impact making this truley a FOOL'S GOLD proposition...

Every person who diverts money from Social Security fund - directly impacts the payments out to current recipients (or - if you believe/trust bush - for those starting to recieve payments in 10 years) ... the payments get smaller because the trust fund is greatly decreased.

The person who diverts money to a private ("personal" ala bush) account can only receive a partial payment from SS guaranteed benefits - proportionate to the amount less what was diverted.

Ergo, a person could invest in the account - which the govt controls in terms of investing options - could end up with positive earnings (eg no loss in the market) and recieve NOTHING because the govt keeps the initial investment and earnings up to 3%. And that person helped shrink overall payments out of social security so the overall benefit is now smaller. And that person is only eligible for a portion of that now smaller SS payout.

Who, in their right mind, would EVER invest in such a scheme?

Fool's Gold!

[liberal N proud]

1. FOOLS who believe that the government wouldn't do anything

to harm the people.

[salin]

4. They haven't yet realized that under bush

the govt has become a corporate crony get rich quick scheme.

[cthrumatrix]

13. this must be spread...MSM blast

[Eric J in MN]

2. Bush is a con man. (nt)

nt

[salin]

3. Sounds like stealing to me (steal the initial investment)

isn't that breaking a Commandment? Shouldn't that make the religious wingnuts angry? (rhetorical and sarcastic question...)

[cthrumatrix]

5. the govt want's 3% off the top...wtf is that.... he said it's OUR $$$$$$$$

Participants Would Forfeit Part of Accounts' Profits

By Jonathan Weisman
Washington Post Staff Writer
Thursday, February 3, 2005; Page A13

Under the White House Social Security plan, workers who opt to divert some of their payroll taxes into individual accounts would ultimately get to keep only the investment returns that exceed the rate of return that the money would have accrued in the traditional system.

snip

If a worker sets aside $1,000 a year for 40 years, and earns 4 percent annually on investments, the account would grow to $99,800 in today's dollars, but the government would keep $78,700 -- or about 80 percent of the account. The remainder, $21,100, would be the worker's.

With a 4.6 percent average gain over inflation, the government keeps more than 70 percent. With the CBO's 3.3 percent rate, the worker is left with nothing but the guaranteed benefit

snip

http://www.washingtonpost.com/wp-dyn/articles/A59136-2005Feb2.html

[cthrumatrix]

6. the sham is revealed -- they don't want us to look as DETAILS

But critics of the Bush plan said the proposed "claw back" renders the whole idea of "personal retirement accounts" virtually meaningless. Indeed, the system would ultimately look something like a proposal made by President Bill Clinton, in which the government would have invested Social Security taxes in the stock market.

That idea was criticized by conservatives because the federal government could end up choosing winners and losers in the financial markets. But under the Bush system, the government is still choosing the stocks and bonds to be bought with Social Security money, said Jason Furman, a former Clinton administration economist. Individuals would get a limited choice, and the government would still keep most of the returns.

"They hope people will think they will take on these accounts and after 40 years, they'll have this huge windfall, but that won't happen," said Dean Baker, co-director of the liberal Center for Economic and Policy Research. "I think they're trying to confuse people."

http://www.washingtonpost.com/wp-dyn/articles/A59136-2005Feb2.html

[salin]

8. to me the big BOOM in the details

isn't even the keeping of much of the earnings on the accounts - it is the keeping of the initial investment. Looks like people would end up with virtually nothing - while shrinking the traditional SS pool so dramatically that everyone loses. But isn't that REALLY the point?

[durablend]

11. Can't have anything to benefit the populace, now can we?

NO NO NO NO NO

It's * selling another pile of his shit to the Murikkkan people...hopefully enough of them grow enough brains to say no.

[cthrumatrix]

7. Costs: $$$$ 4.5 Trillion dollars over the next 23 years ..... Rip-Off !!!

In a nod to lawmakers worried about the budget deficit, the White House will also hold down the initial cost of the Social Security plan by phasing it in over three years, beginning in 2009. The administration official said funding the individual accounts would cost $754 billion through 2015. But because of the phase-in, the personal-accounts system would not be fully effective until 2011.

In its first 10 years, 2009 to 2018, the system would cost more than $1 trillion, Furman said. Between 2019 and 2028, the cost would jump to about $3.5 trillion, he said.


snip

http://www.washingtonpost.com/wp-dyn/articles/A59136-2005Feb2.html

[cthrumatrix]

9. it's calling stealing ...... and the MSM better get off their ass !!

[salin]

10. Thou Shall Not Steal

Where are all those defenders of the 10 Commandments?

[cthrumatrix]

12. better yet... if the pres lies in the SOTU...can he be impeached?

he said our heirs would get the soc sec inheritance in "his plan"....the fact is they get NOTHING

[Beetwasher]

14. This is SOOOOOOOOO Frustrating! Why Can't Somone Stand Up And Say

THIS IS BLATANT THEFT BEING PERPETRATED IN BROAD DAYLIGHT!!!!

Where oh where is someone w/ the balls to do it????

This is a gov't sponsored Ponzi Scheme. It's fucking insane!

[salin]

15. Insane - yes.

But when you get a society that doesn't want to read, doesn't have the time to think about major issues that will affect them in their daily lives... then that society is potentially prone to fall for this grand, and yes insane, deception.