I think the cut is because the current system can't sustain itself.
Under the new system you have a chance of a gain. The main point is
there's no surplus to spend elsewhere. It's in the lockbox to use Al
Gores term.

On 7/14/05, Kevin Graeme wrote:
> So combining my dim memory of an article with these, I get something like 
> this:
> 
> Current SS payment: $5000/month
> 
> Progressive price indexing applies across the board. So under the new
> system, that payment may be cut to $2000/month. So:
> 
> No private accounts: $2000/month SS
> Private account: $2000/month SS + $3000 investment value.
> 
> Or maybe the private account will be paid for out of how much is left
> from the new progressive indexed price, so it will look like:
> 
> Private account: $1000/month SS + $1000 investment value
> 
> Either way there's a cut. (I'm washing out the President's statement
> that people would make more either way under the new system since the
> old system would benefit from the same scheduled adjustments.)
> 
> -Kevin

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