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Author: zorloc Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76384  
Subject: Re: Social Security Date: 8/9/1999 2:06 PM
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Since I am 26, I am in line to get royally screwed. Every projection that I have seen shows me heavily in the red. Everytime I hear someone defend SS as a wonderful program, I get seriously annoyed. SS is nothing put a Ponzi/Pyramid Scheme. Everytime we have had a SS crisis, instead of reforming the system to prevent generational inequities, taxes raised making things worse for future generations. And even now, Clinton has opposed any change in the structure of SS, and his solution has been to pump more money into it. Therefore to preserve a benefit for those that paid in little, I get to pay more.

And it is not as if there are no other options. In 1981 Chile adopted a private system to replace its public one pot system, which was going bankrupt for the same reasons as our social security system. 18 years latter, the only weaknesses of the system are from the legislation that set up the system. Under the system, everyone that participates is guaranteed a minimum benefit, gets life and long-term disability insurance, and the accounts are portable between qualified managers. Since it has started, early retirement is up, people are getting a better annual benefit, and there is a large pool of local money for investments. All this and a 10% mandatory contribution. Sign me up.

If you go to http://www.socialsecurity.org (the Cato Institute's site advocating SS privatization) there is a benefit calculator. With a plan similar to the Chilean System and very conservative projections, I could easily expect between 2-6x the income, depending on investement types.

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