Good point. The question is, what do you do with the SS tax money that’s not immediately needed for payment to beneficiaries. If you don’t have a way to earn interest on it , the value of the “pot of money” declines bc of inflation , just as in a no interest bank account. Currently they “loan” the money to the federal General Fund, establishing Social Security bonds that are to be repaid with interest like any other government bonds. So, if they’re not going to loan Social Security surpluses to the government , should they put the money into private sector bonds? There’s an extra level of risk, of course, because private business don’t have full faith and credit promise to the lender - ie they don’t have the taxing power as a guarantee they’ll be able to repay bondholders
I will have to give that some consideration. There’s no easy answer.
I did like Bush’s proposal of individual private accounts. The Nannies and mother hens did not approve because some folks might invest unwisely. Yet that’s what the Gov did, using our money to invest in pet projects and freebies for votes. In the real world that would be a crime.
I certainly can invest better than the Fed Gov, who btw couldn’t keep a cathouse afloat.