Social Security

[Hazard]

Answer the question. If you are for it, please discuss why you support the idea. If you are against it please discuss why you do not support the plan. Regardless of which side you take, you must have some sort of source or evidence for what you claim.

[quasi-modo]

If social security continues on the way it is currently setup it is going to destroy our economy.

[CrAz3D]

I agreee with people being held responsible for themseleves.  However, I also believe that there are some people that don't have an icom to invest & others are just too stupid.  I think that if SS was semi-privatized it would work better.

Maybe something where you would tell the government which of a list of approved stock to invest in or something.  & If you had paid in however much you could choose whichever stock, like a progressively more private SS when you build up more funds.

[Arta]

What about people who can't afford to make contributions?

I'm just asking really. I don't know very much about this issue at all, other than that social security will go bust if something isn't done. What are the pros and cons of privatising or not? What do the critics of privatisation propose?

[Hazard]

Arta, the idea is that a Social Security tax would be abolished and workers would recieve that portion of their income. It would be up to the people themselves to put together their savings by putting them in the hands of private companies with the understanding they cannot touch that money until they are 55 or so years old. It would be the responsibility of the people to govern themselves rather than have to be spoon fed things by the government.

[quasi-modo]

What about people who can't afford to make contributions?

I'm just asking really. I don't know very much about this issue at all, other than that social security will go bust if something isn't done. What are the pros and cons of privatising or not? What do the critics of privatisation propose?

We have social secutiy now where people are forced to make contributions.

[quasi-modo]

Arta, the idea is that a Social Security tax would be abolished and workers would recieve that portion of their income. It would be up to the people themselves to put together their savings by putting them in the hands of private companies with the understanding they cannot touch that money until they are 55 or so years old. It would be the responsibility of the people to govern themselves rather than have to be spoon fed things by the government.

Some are saying that, but I have also heard of keeping the tax but doing more of a trust fund type of deal for that cash and the government could also invest the money in it's own bonds so the government could use some of the money so it is not tied up but the people will get interest on that. Which I think is a nice idea. You are just banking money rather then current works paying for current old people, you are being forced to pay for your own retirement supplement.

[Stealth]

The state of Wisconsin employee pension system operates in a manner similar to that which has been proposed on a national level. A certain amount each month is taken out of the teachers' paychecks and placed in a controlled, low-risk, diverse mutual fund so that it grows. Risk in the short term is low as these funds do not move very much, and in the long term, the trend is always upward along with the growth of the American economy. Needless to say, Wisconsin's teachers retire with full pensions and there is no concern over the future of the system.

[quasi-modo]

The state of Wisconsin employee pension system operates in a manner similar to that which has been proposed on a national level. A certain amount each month is taken out of the teachers' paychecks and placed in a controlled, low-risk, diverse mutual fund so that it grows. Risk in the short term is low as these funds do not move very much, and in the long term, the trend is always upward along with the growth of the American economy. Needless to say, Wisconsin's teachers retire with full pensions and there is no concern over the future of the system.

The only problem with the government investing in the open economy is that the government is a historically bad investor. Yes this is a mutual fund, but how would this thing be distributed? Would the fund include every company in the NYSE? Or ever Dow company? Or what?

[Stealth]

Investment decisions are made by a board at the state level. Here's some more information about it courtesy the University of Wisconsin System.