January 27, 2005
Gut Social Security before it screws us all
I think that privitization of Social Security is a step in the right direction, but I think it's ultimately a bad idea. Why? Because it and programs like it are associated with lower birth rates, which not only exacerbates the pay-as-you-go Ponzi scheme that these programs are, but severely jeopardizes the cultures which use them.
I'll be really surprised if anyone currently over the age of 40 sees a dime of Social Security money, and at the moment, I refuse to even consider the possibility that anyone over the age of 30 will get theirs. Which means there's not a snowball's chance in hell that I'll see mine.
Historically, society has worked in such a way that parents come to depend on their childen. Today, due in no small part to insane tax burdens, children depend longer and longer on their parents, to the extent that the latest sociological hot-topic is the masses of twenty and even thirty somethings who graduate from college only to move straight back in with mom and dad. This is insane, and if the government weren't taxing the living daylights out of everything that moves, maybe things would be different.
Conclusion: scrap with worthless, rob-the-poor-to-feed-the-rich program and cut my damn taxes. People already have enough trouble making ends meet without the government scraping 12% right off the top of their paychecks, a percentage which will grow in the coming years, I promise you that.
So I entirely support Bush's plans for Federally mandated individual retirement accounts, if only as a step to abolishing an inherently destructive system.
Ryan-
While I agree with you somewhat, I also see some fundamental problems with scraping s.s. altogether. I have plenty of elderly clients who rely solely on their ss checks for their living expenses. How do we cut out their livelihood? Is there another way that we can provide for these who didn't save anything for their retirement? And just because someone made more money during their career and therefore paid more in social security taxes and therefore recieves a bigger check to supplement other savings and retirement plans? I don't think that is right either. The whole system is fundamentally f-d up, but I sure wouldn't want to be the one to fix it. I support Bush's plan but I don't see that step leading anywhere accept to allow me and other more savvy investors to make a few extra bucks.
Two things: first, I'm not for ending Social Security full-stop tomorrow. Things need to be phased out.
Second, it's not really a matter of whether the current Ponzi-scheme or private investment accounts will create a greater return. It's about not taxing young people to the point where they can't start families until they're 30-35. If people keep more of their incomes, they'll be in a better position to take care of themselves, their children, and their parents. I mean, come on: retirees get crap under the current system. It's not even poverty level. Cut taxes and see if their kids can't come up with that kind of funding.
Posted by: ryan at January 28, 2005 10:03 PM