HELLO!
>From the recurring themes being presented over and over again by the same people it becomes obvious to me that everybody's postulating, but nobody's compromising.
And now to continue my part of the problem...
Privatization can be simple.
How?
I'm glad you asked.
The money that is collected, but not spent on SS would NOT be directed to the Government's general fund, nor to private fund managers. Where would it go? To a small office, that employs fewer than two dozen people, where the money is invested in a variety of Index Funds.
Index Funds have minimal need for management, therefore have the smallest management costs of any form of managed fund. Index Funds also invest in a wide array of industries so that there is minimal risk while delivering consistent, moderate returns. As any of the individual funds raise their management costs, or generate consistently less than average returns, our SS funds would be withdrawn and moved to other funds.
This approach requires minimal administration, as compared to many other forms of investing. This approach also keeps the money away from private investment management companies that could be tempted to over-manage (a.k.a. over-charge) for their services.
The risks are smaller than average, so the ability to make huge returns are similarly limited. However, at least 8% in annual returns are well within reasonable expectations. A fund that consistently earns an average of 8% in annual returns will double every 9 (nine) years.
If the surplus funds collected via FICA taxes were to directed to real investments instead of to the General Fund, where an irresponsible Congress spends it immediately, the only pain would be that of our elected officials who would be in the uncomfortable position of having to admit that, despite all election year promises to the contrary, the Federal Government continues to grow, and spend more money, each and every year.
