The main reason SS is running into problems is that it is not a funded account, it is an account which pays benefits out of current spending. Shifting it over to a funded account would resolve the problem. Even a few years of partial funding would significantly reduced the possibility of ss going broke. The thing is, all the vultures in Congress was to sponsor privatized funding of the program so that everyone and his uncle can dip their little fingers into the pie. A publically funded pool would be more effectively monitored. maggie coleman [EMAIL PROTECTED] In a message dated 96-12-04 14:01:09 EST, [EMAIL PROTECTED] writes: >One thing has to be emphasized again and again in the discussion >of (US) Social Security's threatened bankruptcy 25 years or so in >the future: > >the "demographic problem" (too many old retired codgers compared >to the number of energetic young workers) applies just as much to >private pension plans as to Social Security. If the privateers >succeed in looting SS by turning it into a welfare program for >the stock market, they'll discover that the same demographic >problem applies to private support of the old (one's parents >living at home, etc., supported by you). > --------------------- Forwarded message: From: [EMAIL PROTECTED] Sender: [EMAIL PROTECTED] Reply-to: [EMAIL PROTECTED] Date: 96-12-04 14:01:09 EST One thing has to be emphasized again and again in the discussion of (US) Social Security's threatened bankruptcy 25 years or so in the future: the "demographic problem" (too many old retired codgers compared to the number of energetic young workers) applies just as much to private pension plans as to Social Security. If the privateers succeed in looting SS by turning it into a welfare program for the stock market, they'll discover that the same demographic problem applies to private support of the old (one's parents living at home, etc., supported by you). the demographic problem is solved if the labor productivity of the energetic young workers rises sufficiently. And that labor productivity has to be more than just productivity of market output per hour (as with GDP per hour) but has to actually contribute to environmentally-sustainable growth. (If the environment goes further down the tubes, the demographic problem is intensified.) So we can't assume that investment in private-sector capital will automatically raise labor productivity in the right way. The same thing can be said about investment in government capital. Also, the number of energetic young workers can be increased by allowing more in-migration. in pen-l solidarity, Jim Devine [EMAIL PROTECTED] <[EMAIL PROTECTED]> Econ. Dept., Loyola Marymount Univ. 7900 Loyola Blvd., Los Angeles, CA 90045-8410 USA 310/338-2948 (daytime, during workweek); FAX: 310/338-1950 "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- K. Marx, paraphrasing Dante A.
