RE: Question on Safety Net

["Lurix, Richard" <Richard.Lurix@msc.navy.mil>]

	My thoughts on the safety net:

	I think we all agree that Social Security should provide a "safety
net" for the less fortunate, the unlucky, those who've had bad breaks in
life with major illness, etc. and approach retirement years without much
savings.   However most people expect Social Security to provide them with
full retirement benefits, which it never was intended.  People use Social
Security as an excuse not to save because the Government will always bail
them out. Therefore they don't have to save & don't.   That's partly why our
savings rate is non-existent.  Congress & the President (both past &
present) share the blame since long term planning and savings for retirement
have never been of top concern.  Deductible IRAs for everyone were popular
with many taxpayers.  But Congress eliminated them because they were a drain
on the Treasury.  Now CLinton wants a Government IRA for the poor. Rather
than new programs for savings why not improve on existing programs?
$2000/year for an IRA is too small.  Expand those contribution levels.  If
everyone liberally funded an IRA during their working years, they would  not
need to rely on Social Security for retirement.  Instead Congress penalizes
savers & investors.  No wonder we have problems with retirement.