- Nov 19, 2008
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I'd like to bounce my plan to fix social security off people in this forum. To this date I've never heard of any politician express this idea but I think if it came up it would be very popular.
My plan is this: It's similar to the privatization of Social Security without risking it in the stock market.
Every citizen receives a government "retirement account." Their Social Security dollars go in there and everyone is automatically required to purchase US Government Bonds only, nothing else. The interest incurred on this bonds will be used to purchase more bonds.
Currently Social Security only returns about 2% return, which is only enough to cover inflation. So effectively there is ZERO return on your money in Social Security. Basically the government is forcing you to give them a low interest loan, it's theft. Government bonds return about twice as much to my knowledge.
The citizen once they hit say 65 can draw the interest on the bonds. We could also possibly allow them to draw some of the principal out, but only in small lumps, enough so it's assured they have enough money at least until the age of 90. We don't want people cashing out completely at 65 and then being broke at 80.
Here's the kicker, you can inherit your parent's bonds when they pass. Up to a certain amount, say a million dollars, which would be put in your retirement account. Anyone left would be cashed out and give to you in the form of a check or could be redistributed to the disabled. If the working class can inherit their parent's Social Security bonds then over time that would also help eliminate poverty over generations.
This plan fixed several fundamental flaws not only in Social Security but also in our government finances. We would not have to borrow money from China and India (which we do by allowing them to buy our bonds). We could instead borrow from our own citizens but the citizens have a written assurance that that money CANNOT be stolen by the government because it's in the form of US Government bonds. Currently the government is just saying "oh and yea we'll give you some cash later on in life, don't know how much though."
Works great for both. Funds the government and gives the citizen some recourse against government theft, which is what Social Security is.
My plan is this: It's similar to the privatization of Social Security without risking it in the stock market.
Every citizen receives a government "retirement account." Their Social Security dollars go in there and everyone is automatically required to purchase US Government Bonds only, nothing else. The interest incurred on this bonds will be used to purchase more bonds.
Currently Social Security only returns about 2% return, which is only enough to cover inflation. So effectively there is ZERO return on your money in Social Security. Basically the government is forcing you to give them a low interest loan, it's theft. Government bonds return about twice as much to my knowledge.
The citizen once they hit say 65 can draw the interest on the bonds. We could also possibly allow them to draw some of the principal out, but only in small lumps, enough so it's assured they have enough money at least until the age of 90. We don't want people cashing out completely at 65 and then being broke at 80.
Here's the kicker, you can inherit your parent's bonds when they pass. Up to a certain amount, say a million dollars, which would be put in your retirement account. Anyone left would be cashed out and give to you in the form of a check or could be redistributed to the disabled. If the working class can inherit their parent's Social Security bonds then over time that would also help eliminate poverty over generations.
This plan fixed several fundamental flaws not only in Social Security but also in our government finances. We would not have to borrow money from China and India (which we do by allowing them to buy our bonds). We could instead borrow from our own citizens but the citizens have a written assurance that that money CANNOT be stolen by the government because it's in the form of US Government bonds. Currently the government is just saying "oh and yea we'll give you some cash later on in life, don't know how much though."
Works great for both. Funds the government and gives the citizen some recourse against government theft, which is what Social Security is.