In 2007, despite the "pay as you go" construction of the program the SSI fund had $2.2 Trillion in it.
That's about 2x as much money as Goldman Sachs has under management($1.3 T).
But if managed to invest, as you suggest, the nest egg would be much larger. The contribution income to Social Security is about $1.1 Trillion a year. So, if you had followed this course since Al Gore suggested it (you remember the "lock box"?) you would have another $19 Trillion managed by uncle sugar.
That would be moving us along the path to Socialism big time! If you let the Government be the biggest investment bank in the country then everyday they will be deciding if WalMart stock went up or Amazon stock went down.
That seems like a harmful consequence of doing what you and many others suggest. In fact possibly worse than the current mess, as it might well destroy the goose that lays the golden eggs.
Those are some valid points, but I want you to think about it.
Massive funds exist in TSAs, IRAs and other retirement funds. There’s a ton of private investment out there.
I honestly don’t know what the comparative totals are, these private funds compared to the federal SS funds.
It is not my intention to create a massive fund that the government would place all with one broker and gorge the market thereby setting up potential destruction.
The government funds could be broken up into large funds handled by a broad spectrum of brokers, much the same as current personal retirement accounts are set up.
As for taking these funds out of the general fund, what would the overall upshot be?
I believe you stated it would be $1.1 trillion a year.
That’s a large bundle of funds, however the U.S. Government now pays out more than a trillion per year for S.S., according to a Walter Williams article posted on the forum today.
Fund would necessarily flow in and out of the government portfolios. Some would probably be held in reserve.
Still, it would be best if our funds did achieve optimal growth, so that people in their 30s today, have to pay in so retired folks can be paid right now.
I still maintain these funds have been mismanaged big-time.
I am aware of how much money I paid in over time. That money should have doubled or tripled over time. It didn’t grow at all.
I will wind up getting back more than I put in, but that is not my fault. It is the fault of Congressional mismanagement.