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<<SeattlePioneer writes,

Maybe they will make lousy investment decisions, but they will be a hell of a lot better than the virtually zero equity the politicians have left us with now.

Why leave them to make lousy investment decisions. Just put everyone's "self-directed" SS contribution into an index fund. There's a wealth of research that shows 80% of the people left to their own devices do worse.

I favor putting part of the SS contributions into "investments". I just question whether it should be "self-directed".

intercst >>

Fine in theory, but before very long interests groups are going to be leeching off a centrally controlled and directed pot of money. I am sure it would be taxed to serve the numerous noble causes for which politicians want money.

There's really no way to avoid that except eternal vigilence, like the National Rifle Association or other interest groups do on behalf of their concerns. But the interest of the public is fickle, and the interest of special interest groups is eternal and unsleeping.

After all, that's really what happened to Social Security. Instead of beiong administered in the interests of the people who were actually paying the taxes, and holding their money in interest bearing funds, politicians found it a lot more attractive to keep paying out ever larger benefits to people whose payments didn't cover expanded benefits, turning what might have been a decent and equitable system into a ponzi scheme.

Seattle Pioneer
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