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OT - Social Security
In article ,
says...
OK, I cringe at starting another offtopic thread, but this one
should be of interest to many on this group.
According to an article in my morning paper, the dire warnings
about Social Security going broke in a few decades are based on
the economy growing at a rate of 1.6% a year. For the last 75
years, the economy, according to the article, has grown at an
average rate of 3.6%.
The economics professor quoted in the article is of the opinion
that the "crisis" has been manufactured by the mutual funds and
other investment types to tout privatizing of Social Security.
That's a big pile of money they'd love to get their hands on.
Please don't let this degenerate into yet another philosophy
harangue. The only question to be debated is whether the
article is accurate or not.
It appears to me that even if the average rate is halved, it's
about 10% higher (1.8% vs 1.6%) than the crisis estimates used.
Regardless of what that article says about the growth of the economy,
the real reason for the crisis is the number of workers per retiree.
Back in the 30s, it was close to 300 workers paying for the SS of one
retiree. Today, it's at 3 and heading to 2 with a bullet.
That tells me one thing - I need to pump up my 401k and other savings,
because I'm not counting on SS.
--
Regards,
Rick
(Remove the HIGH SPOTS for e-mail)
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