Nine hard but necessary steps to fix our broken Social Security system.

[Lee]

Frank discussion about making the US Social Security system solvent again.

Quote

 

Social Security is a giant Ponzi scheme and, like all Ponzi schemes, it will eventually fail when the cohort paying in becomes smaller and poorer than the cohort receiving the money. It’s going to take a sea change to remedy the problem, which means re-thinking the government’s role. Here’s what could be done:

(1) The Constitution has the federal government’s job description, so we must defund any federal spending that is not within that description, and the projects, whatever they are, need to be kicked down to the state level where they either belong or taxpayer money shouldn’t be spent on them at all. As an aside, this wouldn’t affect only Social Security. It includes banning all earmarks, making congresspeople liable to the same laws everybody else obeys, and ending both so-called “monster bills” and continuing resolutions.

(2) The federal government must balance the budget and pay its debts, including the worthless Treasure Notes that Social Security holds.

The above two steps sound like the end of Social Security, but they’re not. There’s still a way out to protect Americans, especially those who have paid into the system (money that they could have invested for their own benefit) and are now dependent on its returns.

(3) Social Security needs to create the world’s biggest index fund which sees it investing only in the stocks and bonds of profitable companies. Its planned investments, of course, would have to closely kept secrets, with Social Security insider trading resulting in serious prison sentences (including for congresspeople).

(4) In terms of the fund itself, the the criterion for whether it’s profitable needs to be specific, e.g., “profitable over “X” years or “X” years within as specific time window...perhaps ten years.

(5) So that the government doesn’t play favorites in the marketplace, the method for selecting which of the profitable companies to buy from next should be done through something like a bingo basket. That is, there’d be a list of reliably profitable companies from which to choose, but the ultimate choice would be randomized, as happens with the spinning bingo basket and the little ball pulled from it.

(6) Under the proposed new system, when a person’s payroll taxes or self-employed taxes are paid into Social Security, the person’s account would be credited with the percentage of shares proportionate to those funds. Thus, it would function like an IRA or other retirement plan, only the money would be put into the system involuntarily on the part of the worker.

(7) When the individual retires, whatever the account has accumulated becomes what said individual has to retire on. Any unpaid funds left when a retiree passes on should be passed on to the person’s heirs. If a guy has a wife and kids and dies young, whatever is in the account goes to the wife and kids.

(8) Those already retired—or who will wind up with partial benefits via the old plan plus shares in the new plan—must be paid what they relied upon. Thus, the system would earmark a portion of the dividend income from the fund to these legacy retirees, with money coming both from the federal government itself and from the index fund.

(9) Social Security needs to be returned to its function as a retirement fund. Subsets of benefits, such as disability payments, should be removed from the fund and sent to the individual states.

 

https://www.americanthinker.com/blog/2024/05/nine_hard_but_necessary_steps_to_fix_our_broken_social_security_system.html

[Old55]

I've had long talks with my boys about investing. Unlikely a taxpayer with any savings will be eligible for Social Security 30 years from now.

 

I had to self edit some political comments. I've a lot to say about this topic that would not be within forum guidelines.

Edited May 26 by Old55

[Lee]

2 minutes ago, Old55 said:

I've a lot to say about this topic that would not be within forum guidelines.

I would have a lot to say on this subject also.

Perhaps it would be best to debate the merits of the remedies proposed by the author instead. 

[Lee1154]

The stock market itself is a giant Ponzi scheme.  Please note the PE of companies.  When a PE of a company is 10, 15 or 20, in basic terms, the PE is telling you how many YEARS it would take for the company to buy back the stock or pay back the loan interest free.  No financial institution would ever loan money to a company interest free for 10 to 15 years.  Only the American public would do that.  Yes, you can make money in the stock market but that is only due to the price of stock rising.  Please note that the FED props up the stock market also so even the stock prices are manipulated in this process.  Please note that the FED is never audited.

[gbmmbg]

"When the people find that they can vote themselves money, that will herald the end of the republic". As old Ben said, we are fu@ked.....

[MotorSarge]

1 hour ago, Lee said:

(7) When the individual retires, whatever the account has accumulated becomes what said individual has to retire on. Any unpaid funds left when a retiree passes on should be passed on to the person’s heirs. If a guy has a wife and kids and dies young, whatever is in the account goes to the wife and kids.

(8) Those already retired—or who will wind up with partial benefits via the old plan plus shares in the new plan—must be paid what they relied upon. Thus, the system would earmark a portion of the dividend income from the fund to these legacy retirees, with money coming both from the federal government itself and from the index fund.

(9) Social Security needs to be returned to its function as a retirement fund. Subsets of benefits, such as disability payments, should be removed from the fund and sent to the individual states.

[Possum]

There is a lot wrong with with what the article says but would best be discussed in a USA forum.

[hk blues]

6 hours ago, Lee1154 said:

The stock market itself is a giant Ponzi scheme.  Please note the PE of companies.  When a PE of a company is 10, 15 or 20, in basic terms, the PE is telling you how many YEARS it would take for the company to buy back the stock or pay back the loan interest free.  No financial institution would ever loan money to a company interest free for 10 to 15 years.  Only the American public would do that.  Yes, you can make money in the stock market but that is only due to the price of stock rising.  Please note that the FED props up the stock market also so even the stock prices are manipulated in this process.  Please note that the FED is never audited.

There are stock markets in other countries too, you know.  And plenty of folk are investing in them. 

[Joey G]

Never got past "Ponzi scheme"... mainly because it's telltale term used for click bait.....   

[baronapart]

6 hours ago, Joey G said:

Never got past "Ponzi scheme"... mainly because it's telltale term used for click bait.....   

Agreed...