posted on Sep, 27 2011 @ 09:04 PM
Social Security currently assume 22% of the total government budget. It's currently increasing in size by about 8-10% per year, year over year ..
Social Security payments per individual are based largely on the CPI (Consumer Price Index) which means the amount sent per person is set to adjust
per annual inflation. Usually around 3-5%. If the Feds can get away with it .. they will say 0-2%. They would never set it to "real" inflation
levels (10+%) because it would bankrupt the nation overnight. The next largest consumption of SS Funds is new seniors coming into the age range of
payments.. which is set to increase dramatically over the next decade. If we assume 10% growth for the next 10 years, Social Security will annually
cost the US Taxpayers $1.6 trillion dollars a year, far outstripping the intake of funds. This doesn't count the hundreds of billions stolen from
the funds from various administrations, from Reagan to Obama.
There are numerous ideas on how to manage Social Security, especially it's growth, and the disenfranchised youth that feel they would never benefit
from the fund. And indeed, few middle class citizens could retire comfortably on SS funds.. many old folks who paid in their entire lives find living
off SS puts them below the poverty line.. usually just high enough to screw them over for Medicaid funding.
Allow tax payers to turn a maximum of 25% of their earnings into the Social Security fund.. pre-tax. All tax exempt. Allow tax payers to directly
control what 50% of their funds are invested in, much like a 401(k) plan would.. and guarantee those funds to specific tax payers permanently. This
means no administration could ever touch it, no one else in society would benefit, regardless of how much it grows. Put a security measure in place
that means the principle balance can never be lost .. the worst that could happen is 0% growth.
Take the other 50% and put it into a general fund, that the SS Administration would invest as they see fit.. these funds would be, through specific
regulation, impossible to be accessed by Congress or Presidential order.. it's only for the people, no stealing. The funds would supply the money
for every individual, regardless of how much you pay in, it would supply the funds for disability and so on. People paying in would always have the
money they can see feel and touch, it's theirs, they invest it as they see fit. But everyone would still receive the benefits. Essentially it's
combining typical retirement accounts pre-tax deductions into an officially run program by the Government, and a minimum 10% tax mandate could be
applied forcing people to save for retirement..
Sadly the biggest issue in the next 30 years (and omg will it be bad when my generation retires .. mid 20's) is that we don't save, we do minimal
contributions and so on because we feel the economy restricting our way of life. However mandating that we set money aside, while still having
control over it is a huge benefit for the Middle Class.. meanwhile it will still support the Lower Classes because it won't be full privatization.
And it doesn't even need to be truly private, the Treasury Department can establish it's own government funds, this way private organizations can't
run amok with funds. Many nations invest directly into their own economies, especially China. This would be a major boon to the Middle Class, and
hopefully relieve pressure on the fund to provide decent living retirement funds to retirees which currently live below the poverty line.