My point is, that most people work and contribute over a 40 to 45 year span. The dollars you contribute early in your working life are not worth much when you retire.
My question was, what should the government do with the money you've given them over that time interval? Do they pay interest? Do they get that interest from Bonds or the market?
If they just give it back to you dollar for dollar contributed, you take a mighty loss on most of your SS contributions in real terms when they give you the lump sum back. I don't think that's fair.
You said it's not the government's job to help you through life--I agree, but if you're taking that approach, you shouldn't have them confiscating a half to two thirds of what you've given them in real purchasing terms.
The social security trust fund is supposed to earn interest in you can believe the government (http://www.ssa.gov/oact/progdata/fundFAQ.html) but it’s hard to earn interest if the money is used for other government things it was not intended for.
I’ll be lucky if I can collect anywhere near what I’ve paid in because it’s doled out to folks who have never paid a dime into it and it will get worse when the illegal immigrants get their entitlements.
I’d much rather take my 6.2% and what my employer pays and invest it myself along with my 401k etc.
My point was, in order for SS to work what you pay in is what you get and once that runs out your done. If you look it from what you as an individual pay in (6.2%) then you get a 100% return on investment because your employer pays in 6.2%.
Personal opinion is we do away with all social programs, every last one of them. If you want to get ahead in life you work for it.