Right now, we pay 15% for SS. 20% is considered enough to cover a decent pension in every economy in the world. So why does our 15% return so little that everybody here needs to have an additional 401K/pension? That's because the government throws the money away. And they always will.
Charity is not a valid government function. If the society is charitable, government efforts aren't needed. And if society isn't charitable, then a representative government won't be either, except hypocritically.
Forced saving into SS when they intend to make it means tested is indeed forced charity. Forced saving into SS when so much of it goes into SSI is forced charity. Or simple wealth distribution.
The status quo may be as you say, but it's not moral.
Life is risky, and you can't change that. Rather than invest in the promises of men to give me back colored slips of paper in the future, I prefer to invest in things. Gold still buys a suit of clothes, as it did in the Roman era. I have some silver quarters from 1962. They would buy a gallon of gas back then, and treated as bullion are worth a bit more than a gallon of gas today. But treated as coin of the realm, won't even buy one Snickers bar. Over 40 years, that's about 6.58% over 40 years, not too shabby, but just keeping up with inflation, and I'd lose money if I sold & paid taxes.
Getting rid of SS might not make the politicians spend less, but it might let me (and other responsible folk) save more. It'd certainly help my kids and grandkids.
Getting rid of this regressive tax is reason enough.
We pay 12.4% for Social Security on the first $106k and 2.9% on all income for Medicare.
What I don't know is how much of that 12.4% goes for indigent care and how much goes for disability insurance and how much is truly left for retirement. That's why I called for them to be taxed and reported separately. Without that split, I can't tell you how much is truly going into retirement and how much return you are getting. The return will be higher than it appears now, once the indigent care and disability premiums are separated.
"Charity is not a valid government function."
We'll have to disagree. I see a scriptural mandate for rulers to consider the cause of the poor and needy. In fact, scripture states that failure to to do so, will bring an end to your reign. That's something "We the People" need to consider if we wish to continue to rule. Both governments and individuals have scriptural mandates to be charitable.
Research the history of poor laws if you want to be educated on the State involvement in care for the indigent. It predates the colonial times. Our founding fathers considered it a civic duty, but it was left at the state level.
Again, if there is not a forced savings plan, you'll end up seeing more of your wealth redistributed to indigents than you will if there is.
"Treasuries are safe only in that you get back the $$ you are guaranteed, but those $$ aren't guaranteed to buy anything. "
Historically treasuries have provided a little more than the inflation rate. Right now it's not, but it's because we are in a depression. And it's a little scary because no one knows if the Federal Reserve is going to be able to successfully unwind QE without undo inflation.
Your comparing gold to the dollar. But treasuries do pay interest. Investing in treasuries over time would have typically outperformed gold, because of the compounding interest. Right now gold is in a speculative bubble, but compare returns to 4 years ago, and I believe you'll find treasuries outperform over a long period.
Hear are the yields on 10 year treasuries 1960 - 4%, 1970 7%, 1980 11%, 1990 8%, 2000 6%
Source of yields
That means $10000 invested in treasuries i 1960 and reinvested every 10 years would be worth $341,000 today. ($14,802 in 1970, $29,118 in 1980, 82,680, in 1990, 190,412, in 2000, and 341000 in 2010).
Compared to gold: Gold cost $35.27 in 1960 So $10,000 would have bought 283 oz. That gold today at $1376 would be worth $390,133. A little better than the treasuries. But in 2004, when gold was only $400 those 283 oz would be worth only $113,410. Treasuries were much safer and outperformed in more years than the gold was.