How Private Accounts Will Destroy The Country

Discussion in 'Economics' started by qdog, Nov 4, 2006.

  1. qdog


    1.) The only way to privatize social security is to do away with it.

    2.) Private accounts are not a free market solution.

    3.) Private accounts are a new government program.

    4.) Private accounts are a subsidy to the securities industry.

    So called "free market solutions" easily become mutated once exposed to the democratic process.

    After private accounts are initiated, all of every lawmakers energy will be focused on goosing the stock market in order to get re-elected. Stocks will eventually crash, like they did in Japan when prices become astronomically high relative to what they are really worth.

    The securities industry lobby will relentlessly push for increased mandatory Social Security contributions, to increase their take.
    Social Security taxes will increase as a result.

    Everyone who believes in free markets needs to know the truth about private accounts. There is no free market solution in this idea.

  2. Hey, I don't care about no privatization. Just quit taking my money!
  3. If ss was privatized, there would be a variety of investment options, not just in the US stock market.

    Ideally, US citizens would spread the "risk" over a vast assortment of investment vehicles and as each individual ages, less money would be exposed to any stock market and moved to more stable investments.

    I think it would be risky for an individual ss account to invest in individual US stocks, but instead: US stock market indices, other world stock market indices, US and world bonds, money market, CDs, etc.......
  4. qdog


    That is all fine but something is left out.
    Just expose all of that to the domocrartic process for a number of years and we will see the shape of things after a few years have passed.