Bogle on Social Security Reform

Re. "nothing gets done", that is my preferred
condition to be in with politics/politicians. Total
gridlock. This is because of my cynic's view that
whatever they do will probably be screwed up
and/or we'll get screwed. Take your choice.

JG

Quote:

Please go back and read my original post. *I don't believe that it was exactly raving about GWB's proposed solutions. BTW I don't care what political persuasion anyone is. *I thought we would discuss solutions. *Then, here comes the bomb "The only reason Bush tackled SS is to eliminate it, not save it." *Well, that's kind of rigid thinking in my mind.

Well, I may have dropped the bomb here, but this was not my original idea. The move towards Private Accounts is a step in the direction of elminating SS. All neocons know it would be political suicide to propose eliminating it from the get go.

Eliminating SS has to be done in stages, and the private accounts is the first step. This is no different than any other major reform in society. Remember the cigarette smoking issue. First you have Smoking/No-Smoking sections in restuarants, then ban it in Public buildings, workplaces etc. etc. etc. Not that I disagree with the smoking ban, but am using it to show how something is implemented in stages.

Remember the phase outs of your Tax Deductions on Interest during the Reagan years. It was not all at once.

So if you neocons think that the Private Accounts talk is not the start of the movement of the elimination of SS, you are not very good students of history.

"The ownership society" = You're on your own!

[Craig]

Bogle is a very wise man, but I find it fascinating he feels the solution is an "efficient" government management body. *Seems rather improbable.

I always thought the Chilean solution was wise ... as I recall, private accounts are your choice, and absent taking that choice, you are enrolled in the government pension program. *Most apparently are successfully opting for private accounts.

I can't see how the system couldn't experience difficulty, considering our demographic shifts ... fewer younger workers now remitting taxes which are transferred to many older retirees.

The SS "surplus" / trust fund we hear about has always been used to reduce the current year's deficits ... it has never been "saved" ... just pi$$ed away each year. *Just like giving $1,000 each month to your wife in trust, and then she tells you that new Mercedes only costs $100 per month ... after "investing" your "trust" funds with her (which she uses to net against the car payment). *But she promises to pay them back, in 40 years ... she promises she's good for it. *What could be more dependable than a promissory note from your wife?

Which also makes me wonder ... the deficit will really balloon when we take away that punch bowl.

Frankly, I'm just hoping against hope that we're not the generation to be royally screwed here. *Perhaps insufficient savings to truly make it with zero SS, but never given a real opportunity to invest the many thousands we've had diverted into SS and MI over a lifetime of work. *We'll see.