Social Security, Part Three

So, who will finally drive the stake through the heart of Social Security?

From the boomers on down through Gen-X, everyone is aware that it’s a huge pyramid scheme designed to screw the future generations. The “Greatest” Generation thought it would be a great idea to set up a system by which their children and grandchildren would have to prop them up in their old age.

Republican lawmakers have spent years trying to allow privatization of social security. That would mean that you could invest in things that actually have potential to increase in value. See, when you retire, you’ll get every penny you ever put into social security (if you live long enough after your retirement age, which will probably be 95 when you retire). The problem is, it won’t be inflation adjusted.

If you put in $100,000 in 2006 dollars, you will get $100,000 back… in 2050. In 2050, your $100,000 will have the buying power of $21,265.92 (assuming 3.5% inflation) today. If you invested the same $100,000 in the stock market in 2006, it would be worth $2,955,597.17 in 2050 (assuming 8% annually… the 100 year average on the stock market is actually about 12% which would yeild $14,641,750.35).

If everyone were forced to make retirement investments (just as social security is forced), the impact on the stock market and business in general would be huge. We would be pouring massive revenue into businesses, allowing them to grow and spend more money on innovation.

So, why can’t we privatize social security? It’s clearly a much better option than the current system…

It’s really very simple. The people who are currently running the government and doing most of the voting are people who are already on social security, or they’re about to be. They don’t have time to go back and invest in other options, so they are going to vote their own self interests, not the interests of the country. And of course, that’s what we see year after year.

Generation X will kill social security. Mark my words. It won’t happen before then. You’ll hear story after story about “social security reform” which is just a fancy way of saying “let’s raise everyone’s taxes so we can bleed this system dry.” Gen-X will kill it for the following reasons:

1. We already expect to get nothing from it, so it’s in our own interest to stop paying into it.

2. By the time we’re in power, they will have increased the social security taxes by 3-4 times just to keep it afloat, so we’ll all be in the poorhouse trying to pay it.

3. We want to punish the people who decided they should put the burden on their children instead of being responsible and taking care of themselves, and leaving wealth to their children.

When it’s finally killed, there will be cheers in the streets…

… and crying in the nursing homes.

As it should be… child-robbing bastards.

  8 comments for “Social Security, Part Three

  1. June 8, 2006 at 10:44 am

    When I think about the joke that social security is, it just makes me love my 401k even more.

  2. BJD
    June 8, 2006 at 11:07 am

    That’s the best summary of the situation that I’ve ever read. And I think your analysis of what will finally happen is as likely a forecast as any I’ve read. Keep up the good work – and keep stirring the soup.

  3. June 9, 2006 at 2:44 pm

    I agree … except for the “leaving wealth to their children” part. Americans are too spoiled by the notion that they should inherit money they didn’t earn for themselves.

  4. June 9, 2006 at 2:56 pm

    The average savings for a 65 year old going into retirement now is $60k. Only 40% of people in America age 60 have saved over 25 thousand dollars. You guys obviously have saved far above the average amount and feel secure. But how good is life going to be when six out of ten people of your age group are suffering? A chain is only as strong as the weakest link, and your retirement untimately is only as happy as your saddest friend or family member.

  5. June 12, 2006 at 11:37 am

    I think my point was that social security will be long dead before I retire, and even if they raise taxes to support the system, it won’t be enough. I’m suggesting we “force” everyone to invest, but allow them to invest in the stock market instead of investing in a pyramid scheme. I’m NOT suggesting that you just let people stop saving for retirement.

  6. woody
    June 12, 2006 at 12:55 pm

    Well, what ever thin hope S.S had, will soon be dashed as lawmakers agree to give S.S benifits to illegals.

  7. June 12, 2006 at 2:12 pm

    I agree with the analysis. The only difference I have is, if people are stupid, shouldn’t they be allowed to NOT save for retirement, and deal with it themselves without the government. When are we going to let people grow up. Your parents stop making you save for your future when you are four years old. But the smart ones do it anyway. People are so stupid, even if they were forced to save, they would borrow against it, and end up broke in the end if they want to be. And those forced to pay SS who are smart actually save ADDITIONAL money because they know it is worthless. So, smart people end up saving and having money, and stupid people end up not saving, regardless of government programs. 🙂

  8. June 15, 2006 at 4:47 pm

    Great to talk to you tooooooo!

    The wisest misdial ever!

    😉

    *hug*

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