Quote:
|
Originally Posted by C4 Diesel
I am personally vehemently opposed to a general system of taking peoples' money so you can give it back to them later. While the current system is based off the young supporting the old (which to me is fine - welfare-type initiative are surely necessary and this is no exception), it seems to me that privatization will just lock up your own money. While this is a noble idea for people who would inadequately save/invest for themselves, those people with either a greater fiscal understanding or a good PFA/broker are only getting hurt by this. Not only could the money be well invested by these individual and getting a higher return, but the reinvestment into many different sectors of the market would encourage more even and widespread economic develpoment. In general, the people who know how to use their money are the ones who have it. I would therefore propose that IF any privitization happens (which I do not think it should - under the current plan it's going to cost more than we can afford) the upper class should not have to pay a tax to establish their own social security account.
|
Your plan is very much based on "trickle down" economics and it doesn't work. We have that now and with the tax cuts the rich have gotten it is not stimulating the economy nor are wages going up. Jobs are still being exported and personal debt is getting higher. While standard of living and education are falling way behind the rest of the industrialized world.
But there in lies the attractive portion to my idea. If you are someone who is fiscally sound and knows how to invest or whatever, then once you payoff your T-Bill you're done. Invest your money how you wish. You have your retirement taken care of, and if you make enough early in life you reap the benefits of being able to spend your money how you wish.
It takes away ANY of this dependancy on younger workers paying into a system that they will never recieve benefits from.
This also helps rebuild the mom and pop shops that are the backbone of our country. Say by age 40-50 you paid off your T-Bill, so you know your retirement is taken care of. You then invested wisely have a nice little nest egg and decide to open a business with it.
The possibilities are endless. Of course we will see people who don't pay up their principles because of laziness or whatever, and while that is a shame, they will be paid for what they did pay into it. (Much like today.)
This is a very doable, and self reliant plan. As I have stated the only true problem I can foresee is how do you switch systems without affecting someone.
Also as inflation goes up, the government can raise the face value of the T-Bill and the principle, since it affects only the generation and not future generations. Example: this year's babies get a million dollar T-Bill (with the $50,000 principle) with a retirement age of 70 ..... 20 years from now the babies born in 2025 may have to get a 1.5 million dollar T-Bill with a $75,000 principle and retirement age is raised to 75 for them because life expectancy has gone up. In either case the person pays it off they have a retirement taken care of.
This also frees up monies from companies and with tax incentives and such provides for research and development, wage increases and new job growth.