What about those folks who were up for retirement during this last crash? What about them? Too bad so sad?
Also you just recently said this rally was fake, and now you are touting it? Mittens, I had no idea you posted on ET! It is a pleasure to meet you Governor!
Then they either: 1. Opt to select the T-bill "no risk but stable yield fund". 2. Educate themselves when they possess the ability to control their own retirement money. You're making the assumption these private accounts would be like the wild west. I'm not suggesting that. I'm suggestion a massive education campaign and a selection of choices limited in risk, but diversified to allow investors a variety of funds. Lastly, and most importantly by far, it keeps the government out of it 100% and thus they cannot borrow from the fund.
Many company run 401K's limit what you can invest in. One solution: The Government has lots of debt to sell. Each year the money that normally goes to SS would be used to buy one bond that matures at retirement age. This way the Government has steady buyers for its debt. It can still spend the money like it does now. The citizen gets to accumulate an asset for their estate, risk free with a decent return. Because of their less life expediency, minorities get shafted on SS. When a Black man dies at their average life span of 67,the family loses most of the SS money payed into the system. In a private system this accumulated retirement asset might be the difference in breaking the poverty cycle for the children. In fact, it ends up that the Black population paying into SS ends up subsidizing retired wealthy White and Asians seniors who happen to live longer Good ole democrats looking after their biggest supporters. When will the Black community realize the Dems are exploiting the community
You are more optimistic than I that the proles will take such control over their destiny. As far as the government not being able to loot the fund, I'm for that, in theory. In reality, they simply pass a new law, just like the one where Americans had to hand over their gold. I hear where you are coming from, but we have to be real about the political climate. Who is going to step up and stick that neck out? No one in this Congress, I can tell you that.
First, for the proles that don't know what they are doing, the money - by default (no pun intended) - goes into Treasuries until elected out. That would help the US keep more of it's debt here and not internationally as well. These people would earn a meager 1-2% on their money, and it would still be there unless the country goes bankrupt (which would kill SS in it's current form anyway). This is better than their current situation. Secondly, as far as sticking one's neck out, there's no loss of benefit. So there's no sticking one's neck out. If you campaign on the removal of the government from borrowing on it, what is the downside?
Some folks have campaigned on different versions of privatized SS. But they, like Ron Paul, represent a threat to the establishment, so they'll never get any foothold on anything really changing. Nor will the media let them. The Government would lose a huge source of funding and it would mean LESS control, not more.
Bush brought it up and the Democrats went batshit looney and were all talking about how the average investor couldn't handle their own investing.. and in this deregulated environment quite possibly the average investor could not handle it... maybe that is why that frigging Obama put GOLDMAN SACHS in as has first set of cabinet appointees... to ensure that the average person could not handle their investments...