Social Security is a mess. It has become such a bloated program - a political tool - that it will take plenty of political will and courage to deal with it. Some facts:
- It's broke already. There is no SS fund. All the money collected goes into the general fund and is used for other programs.
- As the baby boomers retire, they will create such a burden on the system that the younger generations will have to pay more in taxes or the boomers will have to endure SS cuts...or both.
- SS has been long characterized as a retirement plan. It is only intended to be a supplement to your retirement plan. No one should be relying on SS only.
- SS only earns 1-2% interest each year. 401Ks and other investments earn 4-10% each year on average. Many people already are "secured" in 401Ks.
- The stock market has been a secure investment vehicle since the Depression. On average, it has always gone up.
- The President's plan only calls for 2-4% of contributions to be placed in personalized accounts - and this is totally voluntary.
So, what is the problem? The majority of the public likes the plan. But the Dems will lose their chess piece that they weild every election. For the past several years, this chess piece has had less and less power as the new media informs the public as never before.
The Dems continue to steer into the sunset of irrelevance. They continue to struggle to hold onto any power they can - and now the world sees what they are doing.