reply to post by whatukno
Originally posted by whatukno
I am simply just trying to show the flaw in your argument, the me first eff you attitude of the conservative mindset.
Sure I do believe it should be voluntary, but you haven't explained what to do with those who fail in your system.
In your system of me first eff you society where you rely solely on corporations to take care of you as long as you can afford to pay them or as long
as their stock is still viable, how do you deal with the ones who fail?
I don't know where you get the notion that the social security debate is between a 100% sure thing for everyone (social security) v. a game of
roulette where lots and lots of people are going to fail (saving or investing).
As others have mentioned, a simple savings account will earn a higher yield than social security. A well--diversified portfolio of investments will
likely — in the long-term — earn more than a savings account at a comparable level of certainty.
Compare that with Social Security where the rate of return is much, much lower AND Social Security will almost certainly become insolvent before I'm
eligible in 40ish years. Not only is it more likely that sticking with social security will cause more people to "fail" than sound saving and
investing strategies, but it also severely limits the amount of retirement income available for those who don't "fail".
Essentially, anyone who doesn't already invest in the market and save responsibly for retirement
fails under the current system because Social
Security only pays out a pittance. I just used a SS calculator, and someone earning $60,000 today at age 24 would receive approx. $16,000 (current
dollars) per year from SS upon age 62. That calculator also assumed 1-2% average salary increases over those 38 years. Not many people in many
circumstances can live comfortably on $16,000 — even retirees.
The way I see it, the social security debate should be framed as follows: Either we want people to pay into a scheme with a high likelihood of failure
in the worst case and extremely insufficient returns in the best case, where such a scheme also creates a false sense of security in some individuals
because they rely on that ultimately insufficient/insolvent scheme OR we encourage people to manage their finances to receive greater rates of return,
a low risk of insolvency given the broad risk distribution over different investment assets, savings accounts, markets, industries, etc., and retain
flexibility and autonomy to make decisions according to their own values (i.e. take their usual annual contribution to retirement for a downpayment on
a home or car, pay tuition to improve future income, etc., and then make up that difference the following year).
If we think of it in those terms, a private retirement system is preferable to Social Security in every reasonable area of concern.
As for the "me first" attitude,
anyone who plans to take social security in the next 30 years is being extremely selfish. Let me clarify,
however, that it's not selfish to take SS if you're older and/or haven't had time or the ability to adequately make other preparations like a
401(k) or IRA account. The point remains, however, that the program is nearly in financial ruins, and it will either fail completely or pay below the
expected value to some group of people at some point in time. Eventually some generation will be shortchanged in the SS ponzi scheme, and that
generation will be forced to pay SS taxes and see the well run dry before they reach the retirement age. Everyone who's the least bit politically
informed should be aware of this. Given the awareness that eventually someone will pay SS taxes their entire working life and not receive some or all
of their expected benefits, those individuals who want to keep Social Security the way it is today without major changes or elimination are selfishly
saying, "me first, F you," to their children, grandchildren, nieces, and nephews.
Ultimately, I think it's substantially more selfish to demand one's social security benefits, future insolvency be damned, than it is to recognize
the problem and begin working out a detailed plan sooner rather than later to transition into a more sustainable pattern of retirement savings. I'm
24 years old, and I won't see a penny from social security, but I will almost certainly be picking up the tab for everyone who's retiring in the
next decade or two.
Since you started the discussion with a thought experiment, let me offer you one. Let's say the manager of a small store knew that he wouldn't have
enough money to pay both his salary and his employee's wages on payday but had enough time to make arrangements to solve the problem and at least pay
most of what they each earned. However, the manager instead decided he'd just take all the money that was left as his paycheck anyway because he felt
he had earned it. Is that just? Is it selfish? The manager only did what those who want to keep Social Security as-is and get while the getting is
good are doing.