Privatization of Social Security - A Response to the Critics
ING Direct gives me 2.35% right now in a savings account..FREE!! SS, still that great 1% return. I think it's a crime I am forced to save money at an inferior rate of return, especially when my return will most likely be ZERO.
When you look at even the most conservative of investments (mutual funds), your SS balance would have grown at an amazing rate even if you just invested in an index fund.
The privatization plan isn't laid out for HUGE corporations to make money - it's so everyone can make money. Ever looked at the pension plan that these senators have? It's the exact thing that Bush is trying to do with SS. How come this system is good enough for politicians, but not for the American public? The answer is simple: because if these funds were put into the hands of the people who actually earned their money, then the politicians wouldn't be able to waste it on expensive, failing, and inefficient programs.
Bush stated that the elderly don't have to worry about SS - The money is there and will be there for them. It is us, the young people who will be the ones that suffer. The problem is staring at us, and if we don't make decisions in the near future, the complaining won't be about privatization but will be "where's my money?"
Being able to redistribute this money back into the economy can only help encourage growth and economic expansion. Another thing to consider is that I'm almost positive what is being discussed is the ability to never lose what you put in, essentially making it risk-free.
As for me personally, I don't think about SS too much. I have my own investment for retirement and if i'm lucky, i'll light my cuban cigars with the SS checks the gov't sends me. SS was never meant to be a retirement meal ticket, yet alot of people think the government is responsible to making sure everyone gets surf and turf for dinner. Take control of your own life and stop looking for handouts.