[Winona Online Democracy]
That is an interesting point of view that I hadn't considered (i.e., that the investment is not something that one can pass on as inheritance to one's children).
I wonder what the big insurance companies would say about this principle. Social Security is essentially an insurance policy. If we start thinking it as an investment that should be part of an individual's estate, then shouldn't my kids have access to all those disability insurance premiums that have been paid out, but for which no claim was ever made? (And I hope never will be made!)
I don't think that Social Security was developed to be that kind of investment. It is comparable to "term" life insurance vs. "whole" life.
Maybe I would be supportive of 2 tiers of Social Security that would be parallel to the term/whole difference as in life insurance. The minimum contribution goes into the pot for all of the mandatory contributors, but those who wish to have a "cash value" associated with the investment would contribute a greater amount. "Whole Life" is always much more expensive than term insurance and you can choose what kind of coverage you want and pay the associated premium.
On the other hand, don't we already have 2 tiers of options when we consider Social Security is the mandated government contribution while we can privately contribute to retirement funds in addition to FICA?
I guess it seems to me that we are able to keep the FICA taxes low by spreading the "risk" out among all of the workers. If privatizing is about creating an individual investment, doesn't that change the way the risk is calculated? Wouldn't it drive up the amount each individual would have to contribute in order to offer the same "coverage?"
Because Social Security is more than just insurance for retirement (it is also for the disabled who will always be in need of food, clothing, shelter, and care if they are not able to work), I would say we get a pretty good bang for our buck this way!
Does anyone know about how privatization of Social Security looks at continuing to meet those individuals' needs? We need to all be aware that Social Security is more than just retirement benefits and Medicare for those 65 and over. It's a way of economically providing for the welfare of those who may not be capable of providing for themselves due to old age or disability. It sets minimum standards of what we as a citizens think those vulnerable members of our society deserve. My worry is that privatization will become a way of either lowering those standards or of making it only an "optional" contribution. I fear for the welfare of our vulnerable citizens if funding their basic needs becomes only "optional."
Can others out there provide data or links to confirm or deny these fears?
Kathy Seifert
----- Original Message ----- From: "Paul Double" <[EMAIL PROTECTED]>
To: "Online Democracy" <[email protected]>
Sent: Sunday, January 30, 2005 1:51 PM
Subject: [Winona] Social Security
[Winona Online Democracy]
One of the news talk shows this weekend opened a different thought as it relates to the Presidents proposal to allow some privatizing of the Social Security System. While I do not buy into the reasons as to why it is a good or bad idea at this time the comments provide some thought as to why it will be fought hard but not necessarily for the current publicized reasons.
This was the statement from this Democratic speaker on the subject -----
The funds placed into individual retirements plans would enable most to pass to their kids the money not drawn out by them if held in a private retirement plan. With Social Security all benefits end with your death to be redistributed to those left in the system.
It will be interesting to listen to hear if there are any other not so publicized agenda's by all the players at the table.
Paul Double
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