Azazello1313 Posted September 12, 2011 Share Posted September 12, 2011 The beauty of social insurance is that it is actuarially unsound. Everyone who reaches retirement age is given benefit privileges that far exceed anything he has paid in -- exceed his payments by more than ten times (or five times counting employer payments)! How is it possible? It stems from the fact that the national product is growing at a compound interest rate and can be expected to do so for as far ahead as the eye cannot see. Always there are more youths than old folks in a growing population. More important, with real income going up at 3% per year, the taxable base on which benefits rest is always much greater than the taxes paid historically by the generation now retired. Social Security is squarely based on what has been called the eight wonder of the world -- compound interest. A growing nation is the greatest Ponzi game ever contrived. Economist Paul Samuelson -- Writing in Newsweek, 1967 (Quoted by Schieber & Shoven) works until population stops growing as fast and/or the economy falters. when that inevitably happens, SS just becomes like any other ponzi game. "today Social Security's actuaries say that from now on all annual classes of retirees will get back less from Social Security than they put into it, discounting at the federal bond rate -- that is, they will lose money compared to if they had simply put their Social Security taxes in a federal bond. Moreover, a great many -- including the average male born after 1970 (age 35 today or younger) will lose money outright to Social Security as it is, and be made poorer by it on a lifetime basis." * Quote Link to comment Share on other sites More sharing options...
matt770 Posted September 12, 2011 Share Posted September 12, 2011 Simple solution: ban old people from voting. Quote Link to comment Share on other sites More sharing options...
The Holy Roller Posted September 12, 2011 Share Posted September 12, 2011 Simple solution: ban old people from voting. Or make it a law that in order to collect SS you have to vote every national election. Quote Link to comment Share on other sites More sharing options...
tosberg34 Posted September 12, 2011 Share Posted September 12, 2011 works until population stops growing as fast and/or the economy falters. when that inevitably happens, SS just becomes like any other ponzi game. "today Social Security's actuaries say that from now on all annual classes of retirees will get back less from Social Security than they put into it, discounting at the federal bond rate -- that is, they will lose money compared to if they had simply put their Social Security taxes in a federal bond. Moreover, a great many -- including the average male born after 1970 (age 35 today or younger) will lose money outright to Social Security as it is, and be made poorer by it on a lifetime basis." * What a refreshing read. I miss the old days. Quote Link to comment Share on other sites More sharing options...
WaterMan Posted September 13, 2011 Share Posted September 13, 2011 I think we should stop SS now. These old people who aren't financially responsible should be made to join the ranks of the ever-growing homeless. Quote Link to comment Share on other sites More sharing options...
Azazello1313 Posted September 13, 2011 Author Share Posted September 13, 2011 I think we should stop SS now. These old people who aren't financially responsible should be made to join the ranks of the ever-growing homeless. "old people" are currently the most affluent demographic. I am thinking a lot of them could get by with an ever-so-slightly smaller government handout. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted September 13, 2011 Share Posted September 13, 2011 "old people" are currently the most affluent demographic. I am thinking a lot of them could get by with an ever-so-slightly smaller government handout. You agree with means testing, then? Quote Link to comment Share on other sites More sharing options...
Azazello1313 Posted September 13, 2011 Author Share Posted September 13, 2011 You agree with means testing, then? I think you could say that. if they go down that road, though, IMO it needs to be part of a dramatic overhaul implementing massive savings, because it would basically be re-writing the entire concept of what SS was supposed to be (and sold to the public as) from the beginning. Quote Link to comment Share on other sites More sharing options...
bushwacked Posted September 13, 2011 Share Posted September 13, 2011 I founds me a blog! Quote Link to comment Share on other sites More sharing options...
WaterMan Posted September 13, 2011 Share Posted September 13, 2011 I founds me a blog! Wow who is this famous person. Quote Link to comment Share on other sites More sharing options...
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