A similar rhetorical statement was recently on a Yahoo message board. While I like the idea in general, I think a couple of things might happen as a result.
One, some idiots would still piss the extra away, or they would spend it on other necessities and have nothing to show for it upon retirement age.
Two, some people would remain unemployed or underemployed, and never contribute to an investment or a savings' plan.
In the first two scenarios, those people might reach retirement age, and have zero savings, and few ways to earn a living without an SS program. I suppose they could still qualify for welfare or other benefits.
In the remaining scenario, I wonder what would happen to the stock market if millions of new investors began putting money into it. You would think an influx of stock-buying would be good for the markets, and share prices would rise. However, wouldn't that have the potential to create over-valued stocks? Companies don't have unlimited growth options; there's an intrinsic value to a share of stock, and once that's reached, anything more is purely speculative.
Even a pass book savings account started 30 years ago would have generated a huge nest egg.
The issue is really that i am not responsible for your retirement an visa versa.
People have the freedom and liberty to succeed or fail. The federal gov’t is to PROMOTE the General welfare NOT provide it.