What if Bush had succeeded in flipping social security to the stock market?
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03-24-2014, 12:45 PM
Post: #14
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Its not about playing the market, its mostly about assigning specific portions of the trust "fund" to specific people. Under the current system, any payroll taxes that are not spent on benefits are transferred to the general fund to be spent by Congress.
These dollars are replaced by government IOU's, which are assumed to be the safest investment vehicles. But if government can't balance the budget now, what makes us think that they will be able to as the IOU's start coming due at a much faster rate (baby boomer retirement). It is estimated that the US government debt is going to be downgraded from its AAA rating sometime around 2011-2012. So much for it being the safest investment. Obama's plan is to raise payroll taxes on people who are going to be phased out of collecting benefits, and therefore transforms the program from a defined benefit/insurance program to WELFARE. All in all, Bush's plan would have introduced accountability and some measure of stabiltity to the program. |
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Messages In This Thread |
What if Bush had succeeded in flipping social security to the stock market? - jesswzmn - 03-24-2014, 11:38 AM
[] - angels_harp_2000 - 03-24-2014, 12:12 PM
[] - aqualityone - 03-24-2014, 12:35 PM
[] - scrawnywheel896 - 03-24-2014 12:45 PM
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