The debates this summer, amongst Congress, the media, and the GOP candidates have included sharp talk on Social Security.
It is key to recognize that Social Security actually IS a Ponzi Scheme, as Rick Perry called it. It might be the only substantive issue about which Rick Perry is right. So the two main questions are what is a better system and how to responsibly transition to that system.
Some Republicans talk about Social Security privatization. This implies that employers and employees are still mandated to pay FICA taxes, but instead of going into the social security trust fund or the general revenue, the income earner can decide how to invest the payment from him and his employer, through an government-approved private account. Some of these suggested plans would allow only a portion of withholding
But there's another option. That is to simply no longer requiring ANY participation in it. Let me keep my own money and save and invest in the way I want. I might choose to save and invest in PHYSICAL gold and silver, commodity contracts, farm land, ammunition - but "privatization" would not allow this. My money would have to go to either the government managers or the government-approved private money managers. Privatization, as opposed to being allowed to opt out, implies that private companies will get to earn trade commissions on these mandated accounts. This sounds very corporatist, or dare I say it, fascist.
I prefer METAPHORICAL gold and silver
ReplyDeletealready, for IRA accounts, by law you can only hold gold and silver with an approved precious metals warehouse. So the government FORCES us to trust a 3rd party company with our metals and to pay it storage fees in order to get retirement account tax benefits with gold.
ReplyDeleteI don't have a problem with warehousing metals- warehouses have economies of scale and experience in security. I just want people to have a bunch of choices without the government encouraging some choices over others.