Monday, February 21, 2005

Social Security's Problems

First off, let me make this clear: I don't expect to see a dime of the social security funds that are being taken out of my paycheck every two weeks. With that said, in principle, I'm all for allowing individuals to invest those bi-weekly withdrawals in an account or some other interest-bearing vehicle of their choosing. Heck, they could cash it out in ones and fives and make a leisure suit out of them -- it might improve their chances of getting a date.

Nevertheless, in reality, I'm against allowing individuals to invest their social security funds at their own discretion. Why? Because there are far too many people who would, metaphorically, take me up on my leisure suit suggestion and the government (this applies to all parties) hasn't the backbone to tell these people that they were just too stupid for their own good and they're clean out of luck. When people have completely cleaned themselves out and they go to the government, our little friends in Washington will then come to those of us who had the foresight to save and invest wisely and tax our wisdom so we're all clean out of luck.

Bottom line: stupidity is the strongest trump card of all in matters of governance.

3 comments:

Brother Shaun said...

While I agree that the world is full idiots (half the world is stupid but you don't know which half is which, therefore you must assume all are stupid until proven otherwise), Milt Friedman has endorsed private accounts as it has a wealth creating effect--our accounts will pay those now but will be there latter (much like how a bank account works). As long as no one can touch the accounts until 65, the risk is mitigated...and if they spend it, let them eat cowpies...

Grant said...

That's just what I'm saying: I agree with the economists and financial experts. However, I know the US government's track record (Republican and Democrat alike), and that is they have the tendency to give in to "special interests" (read: people who are too stupid) and make us pay for it. I see a huge tax coming down the road to make up for this.

Brother Shaun said...

It's already happening because people today didn't plan properly for retirement and it is somehow our problem. Save the system using the privatization stategy because we're already dealing with people that didn't plan--net, net, no change on the piss poor planners. If the government is going to tax us more, it's going to tax us more regardless...SAVE the system