Comments on: On Social Security http://www.crazybutable.com/weblog/archives/2005/02/11/on-social-security/ A weblog for people who otherwise wouldn't. Sun, 23 Nov 2008 13:36:19 +0000 http://wordpress.org/?v=2.2.2 By: keir http://www.crazybutable.com/weblog/archives/2005/02/11/on-social-security/#comment-2140 keir Fri, 11 Feb 2005 17:25:17 +0000 http://www.crazybutable.com/weblog/archives/2005/02/11/on-social-security/#comment-2140 John, being as you are all into economics and such, assuming a person wanted to create their own social security through investment or just make themselves a retirement fund, what would you recommend doing or not doing? John, being as you are all into economics and such, assuming a person wanted to create their own social security through investment or just make themselves a retirement fund, what would you recommend doing or not doing?

]]> By: Geof F. Morris http://www.crazybutable.com/weblog/archives/2005/02/11/on-social-security/#comment-2139 Geof F. Morris Fri, 11 Feb 2005 16:36:28 +0000 http://www.crazybutable.com/weblog/archives/2005/02/11/on-social-security/#comment-2139 Actually, if you really wanted to fix SS, you'd have kept the benefits age indexed to the median life expectancy on an order of magnitude somewhere close to what the original gap was. I mean, IIRC, the original "retirement age" was higher than the median life expectancy. We went from carrot-on-a-stick to state-sponsored retirement welfare. Oooooops! Actually, if you really wanted to fix SS, you’d have kept the benefits age indexed to the median life expectancy on an order of magnitude somewhere close to what the original gap was. I mean, IIRC, the original “retirement age” was higher than the median life expectancy. We went from carrot-on-a-stick to state-sponsored retirement welfare. Oooooops!

]]> By: siliconchef http://www.crazybutable.com/weblog/archives/2005/02/11/on-social-security/#comment-2138 siliconchef Fri, 11 Feb 2005 13:14:00 +0000 http://www.crazybutable.com/weblog/archives/2005/02/11/on-social-security/#comment-2138 See, I'm not willing to pay money in knowing that "means testing" would probably exclude 30-49% of the population from getting any money. I'm also not fond of the ideas leaning towards eliminating caps on taxes paid into Social Security ... based on the limits of how much money gets paid out in the end, it's a different method of "means testing" (and more expensive). The private account system isn't really a bad idea. Yes, you can loose on a bad investment ... but given the long-term trends of the stock market you'd probably do better in a S&P500 fund than getting the below-inflation returns the government earns on Social Security (in other words, they're putting your money under a mattress). Spread that money out over the entire market and the company that goes under for penis tumors is balanced by the company that performs the laser surgery ("hold very still and don't think about Cindy Crawford"). I've only been putting into my 401K for 8 years and it's already kicking Social Security's ass (yes, even with the "tech bubble crash", and I've been paying into SS off & on since I was 18). And yeah, it's *your* money ... where the &^%$ does it say in the constitution that Uncle Sam gets to take money from Peter to pay Paul? The Social Security program is a lame way to make folks dependent on government (i.e. vote buying). "Why should I save my paycheck, the government will take care of me?" ... sorry, but I'm tired of picking up the slack for some idiot who can't store nuts for the winter. You want to fix Social Security ... really ... then fix the tax code used to fund it. I'll get around to ranting on that one of these days. See, I’m not willing to pay money in knowing that “means testing” would probably exclude 30-49% of the population from getting any money. I’m also not fond of the ideas leaning towards eliminating caps on taxes paid into Social Security … based on the limits of how much money gets paid out in the end, it’s a different method of “means testing” (and more expensive).

The private account system isn’t really a bad idea. Yes, you can loose on a bad investment … but given the long-term trends of the stock market you’d probably do better in a S&P500 fund than getting the below-inflation returns the government earns on Social Security (in other words, they’re putting your money under a mattress). Spread that money out over the entire market and the company that goes under for penis tumors is balanced by the company that performs the laser surgery (”hold very still and don’t think about Cindy Crawford”). I’ve only been putting into my 401K for 8 years and it’s already kicking Social Security’s ass (yes, even with the “tech bubble crash”, and I’ve been paying into SS off & on since I was 18).

And yeah, it’s *your* money … where the &^%$ does it say in the constitution that Uncle Sam gets to take money from Peter to pay Paul? The Social Security program is a lame way to make folks dependent on government (i.e. vote buying). “Why should I save my paycheck, the government will take care of me?” … sorry, but I’m tired of picking up the slack for some idiot who can’t store nuts for the winter.

You want to fix Social Security … really … then fix the tax code used to fund it. I’ll get around to ranting on that one of these days.

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