On Thu, 2 Oct 2003, Victoria Heller wrote: > Jim Bernstein states: > > "Pensions are earned. They are not welfare." > > Vicky replies: > > We need some arithmetic here. > > If you contribute $50,000 to your retirement plan, and draw $500,000 > of benefits after you retire, who pays the difference?
And what if you contribute $100,000 and draw $60,000 (and then die)? Your logic seems to suggest we should not POOL our money for mutual benefit. Say Al lives to 70, Bill to 75, Carl to 80. Average is 75. If they pool their money, each puts in for 75 years. If no pooling, each has to assume they may live to 80, and each will have to allocate more money for it. Why to we buy insutance? To take part in a very large pool. Why buy car insurance? Is it unfair if I pay $300 then collect $10,000 for auto injury? Should we all forego insurance (including health insurance) and *try* to have enuf cash to meet all eventualities? If you're rich you can do this. The rest of us are not so lucky. --David Shove Roseville REMINDERS: 1. Think a member has violated the rules? Email the list manager at [EMAIL PROTECTED] before continuing it on the list. 2. Don't feed the troll! Ignore obvious flame-bait. ________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Un-subscribe, etc. at: http://e-democracy.org/mpls
