Bush and the Destruction of Social Security
We can make two statements about social security:
1. If the economy grows fast enough over the next 75 years to satisfy the projections that privitized accounts will grow enough to replace the social security reductions, then the wage earners will have quite enough to pay the current rate and keep social security solvent. This means Bush's claim of imminent problems is false.
2. If the economy fails to grow fast enough to keep social security solvent, the return on the private accounts will not be able to make up the difference. This means Bush's promise of saving social security with private accounts is false.
Either way, Bush's position is false. Besides, do you really want to gamble that your retirement will occur when the markets are up?
posted by Dave | 7:51 PM
1 Comments:
Yogi vs Bush
Bush is advocating what no responsible (read licenced by the SEC) financial advisor would recommend to a client:
Borrow money at 3% interest (T-Bill rates) to speculate on stocks, hoping to return more than 6%, in order to earn more than the 3% (the 6% less the borrowing at 3%) you would have earned if you hadn't borrowed the money in the first place.
Now, if this sounds like one of those great Yogi Berra Miller Lite commercials from the 1980's, well, it isn't.
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