Privatization of Social Security Pros and Cons

Home | Community | Message Board

You are not signed in.
New Account

Forum Index Search Posts Trusted Vendors Highlights Galleries FAQ User List Chat Store Random Growery

This site includes paid links. Please support our sponsors.

Welcome to the Shroomery Message Board! You are experiencing a small sample of what the site has to offer. Please or register to post messages and view our exclusive members-only content. You'll gain access to additional forums, file attachments, board customizations, encrypted private messages, and much more!

Jump to first unread post

Pages: < Back | 1 | 2 | 3 [ show all ]

RandalFlagg
Stranger

Registered: 06/15/02
Posts: 15,608

Re: Privatization of Social Security Pros and Cons

[Re: Phred]
#4026120 - 04/07/05 12:23 PM (21 years, 5 months ago)

Phred said:

The thing is, it isn't going to "cost money" beyond the salaries of the government workers required to administer it.

It is my understanding that with Bush's plan not as much money will be going into the main Social Security account(because some will be going to private accounts). The program will start to run deficits much sooner. Given that the "trust fund" is stuffed with IOU's and not real cash, the government is going to have to borrow more money to cover the shortfall of funds. So, not only will the infrastructure of privatization cost money to implement, but the diversion of funds will have to be made up as well. Bush wants to borrow all of that money. I don't think the federal government needs to get into any more debt.

Quote:

I disagree completely that the best way to pay for it is to raise the cap on contributions. The best way to pay for it is to reduce government spending.

Agreed. But, do you actually think that is going to happen? Do you think the suits in D.C. will for a second think about cutting anything significantly? They won't. Therefore the only way to fund privatization is to borrow money or tax it. I say we tax it so we don't leave even more debt for our kids. All of this is going to have to be paid for. I think it is better just to pay for it now.

Edited by RandalFlagg (04/07/05 12:24 PM)

Extras:

Top

Phred
Fred's son

Registered: 10/18/00
Posts: 12,949
Loc: Dominican Republic
Last seen: 11 years, 7 months

Re: Privatization of Social Security Pros and Cons

[Re: RandalFlagg]
#4027983 - 04/07/05 07:12 PM (21 years, 5 months ago)

Quote:

It is my understanding that with Bush's plan not as much money will be going into the main Social Security account(because some will be going to private accounts).

There is no Social Security account, it is an accounting fiction. Money collected as Social Security "contributions" is dumped into general revenues and spent on just about anything. It is true that at the moment more is taken in as "contributions" than goes out in SS payments. It is also true that any future contributions designated as private accounts will be sequestered for the account holder and no one else, thus unavailable for disbursement to the current SS recipients.

That doesn't mean that costs would be increased -- it just means that the government could no longer rip off the contributors. Also note that the government would no longer have to worry about raising money to pay for benefits for those folks -- the money would be already there, waiting for them to hit retirement age.

Yes, the SS program wiould start running deficits sooner (to the extent that people opt into the privatization program) but so what? I repeat -- this is not a choice between good and bad options, it's between bad and terrible options, the terrible being to continue doing nothing. It's far, FAR too late to choose between good and bad -- that milestone was passed over half a century ago.

Phred

--------------------

Extras:

Top

Jump to top

Pages: < Back | 1 | 2 | 3 [ show all ]

General Interest > Political Discussion

Similar Threads	Poster	Views	Replies	Last post
How Would You Fix Social Security, Senator Kerry? ( 1 2 all )	Ancalagon	4,752	31	08/16/04 08:55 PM by Ancalagon
Social Security Reform ( 1 2 all )	snoopaloop53	2,623	28	03/13/05 02:31 AM by Psychoactive1984
The Social Security Abomination: A Primer	Ancalagon	1,112	7	09/18/04 07:26 PM by Evolving
Bush to Announce Social Security Plans ( 1 2 all )	RandalFlagg	2,529	29	05/04/05 03:12 PM by Autonomous
Privatization of Social Security: What Do You Think?	Redstorm	326	0	10/26/03 07:49 PM by Redstorm
Social security	phi1618	793	15	11/15/04 12:11 AM by Xlea321
Battle Lines Form on Social Security	RandalFlagg	733	2	12/22/04 11:09 AM by ZippoZ
Key Lawmakers Cast Doubt on Social Security 'Crisis'	RandalFlagg	644	1	01/23/05 10:44 PM by SWEDEN

Extra information

You cannot start new topics / You cannot reply to topics
HTML is disabled / BBCode is enabled
Moderator: Enlil, ballsalsa
4,157 topic views. 1 members, 2,424 guests and 46 web crawlers are browsing this forum.
[ Show Images Only | Sort by Score | Print Topic ]