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Right now your social security tax goes to a trust fund, where it is immediately spent on current retirees and replaced with a debt obligation. This system depends on younger generations to provide for the older. But what happens when the older generation swells in size compared to the younger, as is the case with baby boomers? When our parents were growing up, a retiree was supported by about 15 workers' tax contributions, when the baby boomers retire it will drop to about 4:1. This means workers' contributions must be 4 times as productive to keep pace. Where to turn? In any given year, the stock market can be very risky and volatile, but over a 10 year period the market has never lost money. Young people should have the option to invest some of their tax contributions in the market over a 20 to 40 year cycle. This length will ensure any interannaul volatility will be levelled off over time. Investing some of your tax dollars in the market will deepen the credit pool, and more importantly, increase the return on every dollar invested, putting social security on a stronger foundation and providing tens to hundreds of thousands more in total benefits. |
Challenge info
| Created date | 29 Jan 11, 16:51:30 |
| End date | 25 Nov 11, 16:51:30 (300 days) |
| Keywords | taxes policy public investment markets free politics security social |
| Category | Professional |
| Open to public | Yes |
| Status | closed |
Moderator's info
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Wyatt Member since 07 Dec 10, 00:13:31 26/06/1984 male |
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Should social security provide beneficiaries the option of investing some of their FICA tax in private accounts?
Give up to 5 points to a group, most points wins. |
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Ranked #1
- Currently owns this claim
We support optional personal savings accounts in social security to provide greater lifetime earnings for young people, channel more funds to productive investment, increase savings rates and put social security on a sustainable fiscal path.
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