If an individual would invest 10% of his gross wages, assuming 4% combined wage growth and inflation, and receive an 8% average annual return that was reinvested each year, at the end of a 48 year working lifetime, the income from his wealth that year would equal his final wages. And he would never have to touch the principal. Where would a low paid worker get 10% to invest? Well, Social Security now takes 10.5% (half withheld and half matched by the employer). Think what it would mean to a low-paid worker to retire at full wages (Not 60% of an average of 35 years' wages- where he has no principal) and have a huge sum of money that he could leave to his heirs if he wanted to. Why should public policy make it difficult for lower-paid workers to accrue wealth? Why not let every worker use his own money (FICA taxes) to accrue wealth for himself and his family? Why shouldn't every worker be able to share in the economic growth that his labor creates?
