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.