I could replace Social Security, Medicare, private pensions and 401k accounts with one unified program, here’s how.
When a child is born who has at least one parent who is a citizen and the workers other is here legally (No anchor babies) the Social Security administration opens that child a mutual fund account linked to the S&P 500. T he account cannot be accessed for 65 years. It will is not transferable and when the permit dies any remaining funds are returned to the government.
Over The last 125 to 150 years the stock market has averaged 11% percent return a year. Assume 9%, compounding annually and everyone would retire with over 15 million dollars, or 30 million per couple
I would wager the government loses more than $50000 on every person right now so over time this would save money. Simply run the current program until the current users die off.
This gives people an incentive to elect governments that pursue non inflationary and nonrecessionary policies
https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator
The account starts with 50k
“The last 125 to 150 years the stock market has averaged 11% percent return a year. Assume 9%, compounding annually and everyone would retire with over 15 million dollars, or 30 million per couple”
Let’s Go!
$500 billion in lieu of FICA and SE tax
Name $500 billion in undervalued stocks available for purchase!
Got to do it every year too.
It would not be rational to put make the incomes of 40 million people highly dependent on the income of a couple hundred corporations, many of which are multi-nationals subject to the caprices of Communist Chinese and EU governments.
On a far smaller scale, state and local governments have not fully funded pensions for teachers and police officers.
My former neighbor taught public school for 42 years. I doubt that she has 15 million dollars headed her way.