The entire issue of privatisation is simple. Today the SSi tax is 7.5% of the payroll
up to 84k (i think thats the cut off). The employer pays another 7.5%. thats 15% of
incomes goes to ssi. If a person makes 40,000 that means that 6,000 per year is placed
"in trust" for that persons retirement income (theoretically). If a person only makes
$20,000 it would be $3000. lets work with those numbers. The SSI Commission is
recommending that 2% of the 15% instead of going into a bankrupt system that the
congress people long ago began to tap for many other purposes (which is why it is
broke and why they cant be trusted)would go into "private accounts" which means that
they would be beyond the reach of Congress' hungry hands. Now take this guy who makes
20k. If he is 25 and he only made the 20k his whole life and that 2% went into his
private account and he worked until 65 at that same job (unlikely but lets roll with
it) it would mean he would have $400 per year for 45 years being se!
!
t aside and beyond the reach of
those grubby congresspeople and waiting there just for him. Ok so what happens to that
$400. well compounding at 7% (long term treasuries) it doubles in 10 years. So that
first $400 becomes 800 at 35, 1600 at 45, 3200 at 55, and 6400 at 65. But thats only
the first year and the money is only in treasuries (not the pockets of the baby eating
wealthy bankers for the uninformed and biased).{{special note: "uninformed and biased"
is not calling someone names when it is a fact so easily proven}} So the second year
another $400. It grows into $6375. So after 45 years this person who never makes more
than $20,000 a year will have about $250,000 that actually is waiting for him/her just
beyond the reach of Tom Daschle but for that persons needs. Now $250,000 if it earns
7% (again in treasuries and not the hands of "wealthy baby eating old people starving
bankers") earns $17,500 per year. These accounts would be untouchable and thats the
big good thing. It has to be assumed that people!
!
will actually be able to put aw
ay alot more. Some calculations reveal that the average worker would have over 1
million dollars in their "private accounts". Now if the market could be used in the
form of index funds which simply track the overall stock market that same person
averageing 40,000-60,000 in income would have at the 8-10% historical average for the
S&P over 3 million dollars EACH.Think about that. The same people now looking forward
to 650/mo or $1200/ mo if married would have 3 million waiting for them and their
needs instead of begging Richard Gephart for another hundred bucks. Gee what a
revelation this must be for some who all this time thought it was a plot to steal
money from the poor by "wealthy bankers". It isnt, its a "plot" to keep the money out
of the hands of those politicians who could give a rats ass about the common people
(you know like Gary Condit and the other guy who disliked poeople who live in trailer
parks) and only need their money to bribe voting blocks with largesse in !
!
their districts or to extort by
threatening to take away money from them that they have grown to depend on. People who
are sceptical of the privatization of Social Security simply stated insult themselves
but they dont know it. They are so bamboozled by politicians into thinking that the
money is safer being trusted to Congressmen (especially those who want to keep
funnelling their money down special interest rat holes to get reelected) than kept
sequestered for their own interest, that it would be funny if it wasnt so sad. But
then again thats how certain people get elected. They still BELIEVE them after all
these years and all the proof they have been lied to (see HUD). marcel deste
