Whatever Congress does, be very attentive and do pay attention to every detail and to every implication. Congress screwed up every chance they had to anticipate and fix the problems when surpluses were the rule. There are no guiltless hands in this. Don't believe for a second the fault is inherent in the system. Fault is inherent in the negligence demostrated over decades by Congress.
USS Alaska: I'm not there yet, and think the President is dumb for introducing this scheme.....the whole point of SS was for those who are not particularly bright nor big earners to have money coming to them in old age so they would have money to live on, out of a sense of decency and to maintain social order in society
Exactly right. Congress, especially Republicans, seem to be setting the stage to ignore or default on the debt owed to Social Security. But, I'm not so sure Bush is dumb for trying to actually do something for the coming generations. Still, you're also right, I think, that whatever Congress will define as individual or personal investment accounts will expand or certainly add a new layer to the social security bureaucracy.
USS Alaska: 2018 will be the last year that more comes into the ponzi scheme than goes out in benefit payments. From then on, it is a downhill slide.
Social Security, if it ever was, became a so-called ponzi scheme because Congress has been negligently irresponsible by not making good on those Treasury notes held by SSA. Either "full faith and credit" of the U.S. stands for something, or it does not. We can't lay this mess off on individual Presidents, even the ones I'd love to blame and curse. Congress is responsible for not doing the right thing when they were spending the surplus SS money.
q_an_a: state of texas teachers have had private accounts for years; so too city of galveston. If teachers can do this so too the nation.
I generally agree. But, what happens when a teacher stops, voluntarily or not, working for the school district or the City of Galveston. And, these are not true investment accounts over which individuals have any real control. Investment decisions are made for them, though it does seem good decisions have been made with good results.
Lots to be learned as the administration and the Congress roll out their ideas.
What happens is that their accounts can roll like an IRA or 401K -under the correct circumstances. I've known people to leave, pay off debt - start a company and move on. Now if this is changed to a National social Retirement program the rules would be modified.