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URL:  https://boards.fool.com/the-social-security-system-has-worked-pretty-well-32161189.aspx

Subject:  Re: Attitude Question - SS Date:  3/15/2016  9:16 PM
Author:  rharmelink Number:  79371 of 97361

The Social Security system has worked pretty well for 80 years, far longer than most insurance companies have been in business, and unlike more than 1,000 of them which are no longer in business

LOL. I hardly think what we have today can be compared to what was established 80 years ago.

"Pretty well" = It's cost has increased from 1% of every dollar earned to over 12%. Thank goodness every tax rate hasn't done "pretty well" since they were first established. Although they have piggybacked a few other programs unto the original one.

And to top that off, they piggybacked Medicare on to it. A measly .35% of every dollar earned to start, but it's blossomed into nearly 3%. Another great success. Bait and switch.

The only thing keeping it going is forced participation. How many people would sign up for it if it was voluntary?

And, BTW, any insurance company carrying negative reserves on expected payouts would be shut down by the government. I used to be in IT for a commercial insurance company, directly supporting the pricing and reserving activities of the actuaries. My system provided the raw data to them, and collected their projections and estimates generated from that data. We often produced reports on reserving levels for the state attorney general's office and other agencies.

I'd enjoy seeing the results of a blind review of the SS/M pricing and reserving levels, when the reviewers are told they are looking at the operating results of an existing insurance company.
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