>>>>>The Social Security problem can be summed up very simply for younger workers: their "return" will be negative. It is very easy to communicate it this way:
>>>>Imagine if you put $10,000 in the bank (risk-free) for 40 years.
Risk free to whom? Certainly not the taxpayers. Ever hear of the S&L; Crisis?
>>>>At the same time put $10,000 into the Social Security system. Through the magic of compounding, the money in the bank might be worth $30,000 after 40 years. According to information provided by the SSA (using my PEMA statement), the $10,000 dollars will be worth about $9500.
But of course, the Earnings statement always uses 'current' dollars. Your bank example uses 'future' dollars. Not the same thing. Hence, your 'negative' return statement is inaccurate.
