Wednesday, December 29, 2004

Soc Sec Wins Investment Game

Interesting story -- this guy took all the payroll taxes he paid into Social Security, tracked down the return the Social Security Trust Fund earned for 45 years, and then compared the result with what he would have gotten had he been able to invest the same amount of money over the same period in the Dow Jones Industrial Average (including dividends).

Guess what? The Social Security investment won out: $261,372 versus $255,499, a difference of $5,873.

Also, keep in mind that "under Britain's privatized pension system, so many retirees are doing so poorly at this moment that a commission warned this fall that widespread poverty among the elderly may be returning, which could require massive new government spending." This is also true in Chile.

And remember, its not really privitization anyway -- its destruction.


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