Microeconomy Q on social security, any heads up?

[David Livingston]

3--The stock market indexes might go up, reflecting optimism that more capital would be going to the private sector.

4--The additonal risk is the risk involved in holding a security. The rate of return is not guaranteed and you may lose your invested funds. Other risk is that you don't know how long you will live so it's not clear how much to invest. There is also inflation risk.

5--Presumably capital is more productive in private sector because finances investment. Social security finances mostly current consuption. Martin Feldstein argues that economic growth is lower given the social security system

6--The mutual funds with the highest returns may not be in the government approved list since they are the riskiest.