At 10:35 PM 1/16/2005 -0800 Doug Pensinger wrote: >1. How far would the tweaks I mentioned (and whatever other practical >steps can be taken) do towards actually fixing the system as it now >exists?
I must have missed that post, so I can't answer that one. >2. What is the advantage of having the Feds involved _at all_ in >individual retirement savings that are not SS? It would the mandate that every worker saves for retirement. So long as there is a safety net, one needs incentives against excessive risk taking, knowing that that safety net is there. >3. Why can't we take whatever excess money there is _now_ in the system >(including money that the Fed owes SS) and invest it in some secure way in >order to insure SS's solvency? There is no "excess money" in the system. Every dime of Social Security taxes collected in excess of current payments is currently being spent by the rest of the Federal Government. After all that spending is done, the US Government is still borrowing on the order of $500million per year. If the Social Security Administration were to sell its "IOU's", it would essentially flood the market for US bonds, making all US bonds less valuable. By no longer permitting the rest of the federal government to spend excess Social Security collections, you would dramatically increase the amount of money the Federal Government would need to borrow. (Consider, that if one excludes Social Security revenues, even Bill Clinton *never* balanced the Federal Budget!) It could potentially be a recipe for financial disaster. JDG _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
