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|Subject: Re: Enron and Social Security||Date: 1/26/2005 11:08 PM|
|Author: iamdb||Number: 44211 of 78012|
When I wrote, "I understand this is really a political rather than financial issue," I had two issues in mind:
1. Political spending is aimed at special interests who keep the politicians in office. The funds withheld for social security are not available for investment (except in government paper), because they are used to subsidized special interest spending projects.
2. A strong contingent has long wished to reverse FDR's New Deal policies, so a "sky is falling" compaign serves that purpose.
I would like to see a serious, non-politcal analysis of the situation if a few changes were made, e.g. (1) eliminating the cap on income subject to withholding, (2) investing the social security funds along the lines a fiduciary pension fund might follow, say an allocation of 60% Wilshire 5000 Index, 40% Lehman Intermediate Bond Index. I realize this would deprive the politicos a prime source of pork money, and wouldn't do a thing to reverse FDR, but I'd just like to see the numbers.
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