From: "Steve Ewing" 

On Wed, 15 Dec 2004 20:11:46 -0500, Mark  wrote:

> once it gets rolling though, they won't want
> to be left out of having their own supplemental account

Social Security is *insurance*-- it is there as a guaranteed buffer, no
risk, no worries.  You want to dabble in the market, by all means take
$1000 and invest to your heart's content; and if you lose it, or you don't
make enough to retire on from it, there's SS to help out.  That's the idea.

Over at www.washingtonmonthly.com they are going over and over the
economics of it; in a nutshell if the projections necessary to have SS run
out of money in 2042 are valid, then those same projections show that
private accounts won't help.  Conversely, if the projections that show
private accounts are a good idea (ignoring the transition costs) hold true,
then SS will not need any saving because the economy is doing so well that
the fund doesn't run out.  It's a few decimal points either way in a
projection that looks 40 years ahead-- SS is not really in trouble and we
can easily afford to let 'er ride a decade to see how it goes.

--
Steve 
http://www.qmss.com/sewing

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