[IP] more on A Math Lesson for Media Covering Social Security
Title: more on A Math Lesson for Media Covering Social Security
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From: <EEkid@xxxxxxx>
Date: Sat, 08 Jan 2005 19:28:15 -0500 (EST)
To: <dave@xxxxxxxxxx>
Subject: Re: [IP] A Math Lesson for Media Covering Social Security
Use as you see fit.
Mr. Faber,
The social security investment program currently promoted by the Bush administration is very similar to what has been used by federal employees for the last 20 years. In the US civil service, the employee has a percentage up to 15 percent, deducted from his or her pay and put into a TSP account (Thrift Savings Plan). The employee can then invest the money within the funds within the plan. Then at retirement, the employee can withdraw money and pay their taxes.
The downfall of this system is that both the Clinton and the Bush administration have taken money from the TSP G fund and placed it in the general fund in an effort to prevent the US from reaching it's debt ceiling. Imagine for a moment if you were a corporate CEO who used 401K funds to prevent your company from filing bankruptcy? I'm confident handcuffs would ensue.
So, the investment scheme being touted as a fix for the social security system is already being robbed in a very similar civil service system. I simply can't imagine that this won't happen to the general population once that huge pot of money is available. Just as with the federal TSP, there will be an IOU left in place of retirement funds.
By the way, wasn't the current social security system created to save those living in the post 1929 crash and depression? This occurred because everyone put their money in the stock market which collapsed. Now, we are to believe that putting our money back into the stock market is going ensure we have a safe retirement. This sure sounds like circular progression to me. What happens when a large portion of the population begins to withdraw money from the stock market? What will the impact be?
Jerry Ballman
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