2011 SS

Wednesday, September 17, 2008

Back when the Republicans were making a lot of noise about privatizing Social Security, I was aghast. (I wrote a blog entry on it, but I can't find it now.)

Those people have to be close to my age -- and yet they don't "remember" where Social Security came from? Why it exists? Why the government controls it?

Social Security came out of the Great Depression. Companies had failed, and people lost jobs, retirement plans, and investments. Banks failed, so savings of a lifetime were gone. Elderly people who had worked and saved all their lives were left with nothing. Their children, if they had any, were struggling, too. Social Security was designed to ensure that people who did a lifetime of honest work would not be left with nothing. It may not be much, but it's more than nothing.

Many large companies no longer fund employee retirement. They instead "give" the employees X dollars a year that the employees are to invest themselves in 401Ks or IRAs. And let's pretend Social Security had been privatized several years ago. Being a good little investor, you had diversified. You put
1/6 of your total funds into Lehman Brothers,
1/6 into Merrill Lynch,
1/6 into an annuity with American International Group,
1/6 into a Bear Stearns account,
1/6 into Fannie Mae stock, and
1/6 into Freddie Mac stock,
all good big sturdy companies.
You intended to retire at the end of this year.

Congratulations.

Social Security isn't much, but it's a whole lot more than NOTHING!

Some of those investments will be completely lost. Some will eventually recover, but it could take a decade. You will be forced to work until they (if you still have a job) fold, spindle, and mutilate you into the grave. And forget a decent salary. Do you know who many people your age are desperate for any job?

Aren't you glad there's a Wal-Mart just down the street?
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