Quote:
|
Originally Posted by Lenny2
How are you wrong? Oh let me count the ways.
75% of mutual funds beat the standard and poor's index??
That's total bullshit, over 90% of mutual funds can't beat the index consistently, that's why lots of people buy index funds.
|
You know full well this is a bullshit deflection of the issue. Check your stats again over a 20 year average 75% of all mutual funds beat the standard and poor's index.
some times these funds under perform other times they over perform on average they over perform.
Common sense tells you what your saying is total crap.
If 90% consistantly under performed everyone would be moving retirement money into the standard and poor index and all the mutual fund companies would go out of business.
The fact is the number of mutual funds are growing.
If a fund manager has even 2 or 3 bad years in a row he gets canned and replaced with someone who is better. That is exactly why the mutual funds out perform the index.
Quote:
|
Originally Posted by Lenny2
Private accounts do NOTHING to fix the solvency problem in social security.
The money that comes in today in taxes goes out today in order to pay benefits.
Retirees who are currently receiving benefits paid into the system, but the money they paid in has been spent long ago for benefits for previous retirees.
|
Wrong again payroll tax income goes into the general pool of tax revenue, it is not being issolated to payout retirement benefits. If it were there would be no problem because the while the baby boomers were working they would be paying into the system more that the retirees would be taking out of the system. It is only because the money is not issolated that we have a solvancy issue because when the baby boomers retire there will be more people retired taking money out of social security than there will be putting money in and there will be no surplus of revenue to draw from.
Quote:
|
Originally Posted by Lenny2
Bush's "partial" privatization scheme will put us 4 TRILLION dollars in debt, in addition to all of the debt he's already responsible for.
That's TRILLION with a T. We would have to borrow that much in order to continue paying out benefits, since today's payroll taxes would be diverted into these "private accounts"
So basically privatization of social security is the equivalent of going to the bank, getting a loan, and then using the money from the loan to invest in the stock market, and hoping that you come out ahead in the end.
How many financial experts would tell you that's a sound thing to do?
|
"Partial" privatization is a way issolating 2.5 TRILLION dollars yes that TRILLION with a T of tax revenue that should be reserved for social security but irresponsibly redirected to other government buracarcies which waste tax payer money by paying government employees $20 /hour for jobs that could at minimum wage.
This government waste results in programs being underfunded by $1.2 billion even though the republicans increased funding for the program by $500 million ( 2x inflation).
Is it perfect no !!
A perfect solutions would have been to privative the accounts 25 years ago when the baby boomers first entered the job market instead of looking at a winfall of revenue to fund all the big government wasteful crap that has been supported of the last 25 years.