Erik wrote:
We need to fix the system NOW by not promising any new benefits beyond what has already been promised . My favored way to do that was elaborated in the PSS system suggested by Kotlikoff that I summarized here earlier (basically, every dollar that anyone has already paid into the SS system will be paid out fairly in benefits, but no new benefits would be accrued and no new contributions would be made). Thus, no one is cheated out of their fair return for contributions already made, but we don't continue with the unfair system where current young workers are almost certain to pay in more than they ever receive in benefits. Even so. today's young taxpayers would still get a raw deal, because some sort of new tax would have to pay for the benefits of people 50 and over who are expecting benefits, but at least we can avoid sticking it to the generation being born now if we fix it now.
OK, a few questions. I know that you may have answered these in one way or the other at some point in the discussion, but either I haven't understood the answers or I missed them.
1. How far would the tweaks I mentioned (and whatever other practical steps can be taken) do towards actually fixing the system as it now exists?
2. What is the advantage of having the Feds involved _at all_ in individual retirement savings that are not SS?
3. Why can't we take whatever excess money there is _now_ in the system (including money that the Fed owes SS) and invest it in some secure way in order to insure SS's solvency?
-- Doug _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
