There does have to be an arm's length way for investment options to be vetted for availability. How do you have competition in such a regulated, low fee environment?
It seems phasing in is an important part to that. It also seems that keeping it voluntary is important.
Just remember, regarding the % growth issue, that SS is offering somewhere around 0.5% to 2% on investments.
Having society transform into an ownership society will change capital markets in important ways. But having the pre-401K defined benefit society had disortions in the market as well. IOW, having many tens of millions of people in or out of the market is going to distort the 'ecology' of the market no matter what.
A potential benefit from the ownership society would be that there would be more capital for VC. and we at the HZ would mostly like to see zillions of VC$ available for some of the great works we hunger for, like space, high end robotics, new energy etc.
I think an important driver of why the Bush reform, in some recognizable form, will happen is the compelling issue of equity jsutice. Right now, someone dying 1 day prior to collecting SS gets, after a $500 death benefit, zip for their estate, if they do not have a spouse qualified for SS widow/widower benefits.
the future ahead, for defined benefit plans like SS is very limited. they don't work long haul. Evfery company with them seeks to severely restrict or end them.
The alternative, defined contribution, is not perfect but does seem to be more sustainable.
Ed
Current Events » in reply to Serious Insecurities concerning Social Security 'Reform'
Very good points
The whole thread (75 posts)
- Serious Insecurities concerning Social Security 'Reform'
- My plan to reform Social Security
- Thats actually a pretty good idea, IMO
- If it "over-funds" the system, just cut the tax rate. Simple. (n/t)
- The system is currently overfunded as it is
- Not if it is to become a VESTED system with assets backing liabilities.
- re: The system is currently overfunded as it is
- I could live with that.
- Thats actually a pretty good idea, IMO
- Not to mention the dark secret that people are only just realizing..
- The only true fix for SS
- More to the point
- re: No big secret.
- Tom hit the BS buzzer
- So the fix is to simply confiscate more and more money?
- Further, they always claim that it must get worse and worse
- Bartleby the Scrivener
- Does anyone else see the political weirdness here?
- Not my problem, Tom, that you have a propensity for strawman arguments and distorting positions you disagree with
- More on the Amazing Vanishing Social Security Crisis
- The DNC choice to take the position that after all the years of claiming there was a crisis, now there isn't one, will not hold up. (n/t)
- again
- correction, misread something Tom said
- More on the Amazing Vanishing Social Security Crisis
- Not my problem, Tom, that you have a propensity for strawman arguments and distorting positions you disagree with
- Tom hit the BS buzzer
- What Ed said.
- Very good points
- My plan to reform Social Security