Appealing to Greed to Sell Bush's Social Security Scheme

[Eric J in MN]

The conservative Heritage Foundation wrote in 1998 that we should privatize Social Security because we'd get better returns ("Social Security's Rate of Return" by William W. Beach and Gareth E. Davis, January 15, 1998.) They give an example of a couple who supposedly get only a 1.23 rate of return under the current system vs. 5 percent if Social Security were privatized.

Today, a letter in the Minneapolis Star Tribune ("A much better opportunity", letter in online edition only) also makes this argument, but supposes an 8 percent rate of return, resulting in...

...a $1,163 increase in monthly income over the current system.

Which opportunity would you rather have your children and grandchildren have, a monthly income of $1,642 or $2,805? That's a difference in annual income from Social Security of $19,408 vs. $33,660.

Sounds great. Free money.

I'd prefer $33,660 to $19,408.

But wait.

There is no such thing as free money.

The money workers pay into the Social Security fund goes to retirees.

The better-returns argument is like telling a man who spends $300 a month on care for his elderly parents that if he put that $300 into a mutual fund instead he'd get a bigger return. Yes, but what about the care for his elderly parents then?

[Cha]

1. This isn't the first time bush tries

this scheme..

SNIP~
Privatization push isn't new for Bush

Social Security will go bust by 1988, he said in 1978
By Richard W. Stevenson

Social Security "will be bust in 10 years unless there are some changes," he said, according to an account published the next day in The Midland Reporter-Telegram. "The ideal solution would be for Social Security to be made sound and people given the chance to invest the money the way they feel."

More at..
http://deseretnews.com/dn/view/0,1249,600115059,00.html

[Politiclo8]

2. Unfortunately............................

the Rethugs never tell the who truth. They leave out that trillions will have to be borrowed to start these 'personal' accounts. With the current federal debt already at record levels and the value of the dollar continuing to fall, interest rates are going to have to be raised to attract foreign banks to buy dollars again (the other day a major bank in South Korea stated that it planned to diversify its reserves--basically they are dumping dollars and buying Euros).
If Bush gets his way and borrows more money then the dollar is going to spiral down and who knows what will happen. Long term these structural deficts will cripple the economy by raising long term interest rates therefore destroying the value of homes, making money to buy big tickey items like cars too high to borrow.

Unfortunately Rush Limpballs will blame Clinton and Rush's sheeple who have the attention spans of a 30-second commercial will buy it and roll over and go back to sleep while America becomes another third world country.

[Eric J in MN]

3. kick

kick