This being an election year, we have already begun hearing laments about how tax cuts drain money from the Social Security trust fund and thus threaten the retirement income of future generations. I've tried to explain elsewhere that the "trust fund" is merely an fiction designed to account for the fact that Social Security payouts will one day (2019 is now the estimated year) exceed FICA taxes, at which point the government will have to fill the gap by raising taxes, cutting other spending, reducing benefits or borrowing. Those choices will be the same - and will be of the same magnitude - regardless of the size of the federal budget deficit in 2004. David Hogberg ("Trust Fund Babies") makes a stab at getting the same point across. It isn't abstruse. Maybe, if enough of us repeat it, it will sink in.
To allow the stock market to tie into such a large pool of money is to me allowing the wolves into the chicken coop. Have we not seen what happened with all of the 401k's and retirement accounts a few years ago when the bubble of the 90's burst. Just imagine a few trillon evaporating the same way. Who's going to guarrantee all the years of contribution when suddenly the market devalues and we see the little that people expect to survive become even less. I believe this is a road to disaster and I hope there is someone in washington with the balls to see the truth. Sure, if a person who wants to speculate the market and can afford to lose whatever funds they have invested wants
to take their chances then it's their choice.
The stock market is not a perfect thing and
considering the various scandals that the
average american has forgotten (and I don't mean monica) the worst hands to put social security is in the hands of stockbrokers cause they will get paid either way.
GBUA
IMM
Posted by: Max234@hotmail.com | Sunday, January 09, 2005 at 11:30 AM