Nothing from that months' worth of collection is spent nor given out in any form.
After the month, regular payments recontinued, but the interest realized from that one month's investment was left to ride and roll over.
Couldn't/wouldn't the resulting sum after say ... 1 or 2 years come close to handling all or most of what SS is doing now?
And how do we 'pay out' during that month of investment?
The same way it's done now ... with phoney money and printed chits/vouchers and etc.'s.
Like I said, I haven't really been able to think this thing through, but I got the idea from an IRA I started 5 yrs ago with 560. bucks, dropped to less than two in a short time in early 2000's but is growing now, and I haven't contributed a dfime into it since I started it.
I don't know how long it would take if I just let it ride, and I might just do that just to see what happens, but ... well ... just my two cent's worth.
Seems to me the numbers game, with compounded interest utilizing the US populations' SS deductions could potentially pay off waaaayyyy big.
I really would like some commentary on this.
The seniors who didn't get their Social Security checks would lynch whomever had proposed such a thing.
Sometimes more, sometimes less. Sometimes, there is even a year-to-year decline. But understand that there has never been any rolling ten-year period in American history that overall stock prices have gone down!
Even during the depths of the Great Depression, stock values in 1933 were higher than they had been in 1923.
The administration hasn't cited the fact yet (and probably won't), but the pool of investment capital created by personal accounts should stimulate investment in the economy and generate sufficient continued growth that new revenues might go a long way toward closing the unfunded liability in the Social Security "Trust Fund".