What if Bush had succeeded in flipping social security to the stock market?

[aqualityone]

First of all it was to be voluntary. and many other considerations, such as over 50. the thing is now Obama is going after it with no choice for us. He is going to butcher this one. So get ready to feed your parents because all the money they put in for retirement will be gone.

[bramandu]

The long standing republican goal of abolishing social security would have been achieved.

[vwvw19]

Workers would have some real money instead of just an IOU from the Govt that they may pay us something years from now, if they have any money to pay us.

[scrawnywheel896]

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.

[Pat]

A lot of elderly and disabled people would be homeless now.
And the government would do nothing to help them.