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Now, unless I'm missing something this is how things stand:
1. $s that are currently going to support people on SS are diverted into government-supervised private acount thingies.
2. Since that money is now going into private acount thingies instead of supporting people on SS there's going to be a huge-ass shortfall.
3. To cover the shortfall, the government prints huge stacks of treasury bonds and sells them to investors.
4. The private accounts then make a ****-load of money, since stocks have a higher return than treasury bonds and all this money makes everything happy and wonderful.
So basically the whole thing is based on the premise that stocks are a better investment than government bonds (the current content of the SS trust fund) and that by having SS taxes go into buying stocks everyone's going to make a ****-load of money, right? So basically the government is gambling that stocks will have a significantly higher future return than treasury bonds? Or am I missing something?
But in order to make this whole thing work you need someone to buy all those HUGE stacks of treasury bonds that will be needed to fund the SS checks of the current retirees while the money that's going to them now is diverted into private account thingies. These are the very same treasury bonds that are apparently a crap investment.
So, in short, for Bush's SS plan to work you have the smart government buying the high yield stocks and the stupid private investors buying the low yield government bonds. The whole plan doesn't make any sense unless it assumes that the government is a smarter invester than private investors who'll need to buy ****-loads of treasury bonds in order to fund the whole thing.
WTF! Isn't that kind of thinking supposed to be punishable by death by republicans or something?
1. $s that are currently going to support people on SS are diverted into government-supervised private acount thingies.
2. Since that money is now going into private acount thingies instead of supporting people on SS there's going to be a huge-ass shortfall.
3. To cover the shortfall, the government prints huge stacks of treasury bonds and sells them to investors.
4. The private accounts then make a ****-load of money, since stocks have a higher return than treasury bonds and all this money makes everything happy and wonderful.
So basically the whole thing is based on the premise that stocks are a better investment than government bonds (the current content of the SS trust fund) and that by having SS taxes go into buying stocks everyone's going to make a ****-load of money, right? So basically the government is gambling that stocks will have a significantly higher future return than treasury bonds? Or am I missing something?
But in order to make this whole thing work you need someone to buy all those HUGE stacks of treasury bonds that will be needed to fund the SS checks of the current retirees while the money that's going to them now is diverted into private account thingies. These are the very same treasury bonds that are apparently a crap investment.
So, in short, for Bush's SS plan to work you have the smart government buying the high yield stocks and the stupid private investors buying the low yield government bonds. The whole plan doesn't make any sense unless it assumes that the government is a smarter invester than private investors who'll need to buy ****-loads of treasury bonds in order to fund the whole thing.
WTF! Isn't that kind of thinking supposed to be punishable by death by republicans or something?
). I'll be lucky to live to 65. The goverment is just stealing my money. 
. If only we could eliminate them somehow.
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