Several days ago, I wrote that Social Security is a corrupt Ponzi scheme that needs to be turned into a national 401k system. Moreover, this is not 2005. America recognizes that our whole entitlement system and debt spending needs to be radically altered. It is why November is going to be a wave election. But while America gets it, neither Democrats, who are again demagouging the issue of Social Security, nor Republicans, who are cowering in fear of the demagogouery, get it. Two very good posts today, one from No Oil For Pacifists and a second from Another Black Conservative, touch on those issues.
This from No Oil For Pacifists:
Finally, page 14 summarizes the Social Security "gap": "Over the infinite horizon, the shortfall (unfunded obligation) amounts to $16.1 trillion in present value."
Conclusion: I'm not saying there's no risk associated with stocks and bonds. But at least you own them--you have no right to Social Security benefits, which can be changed or eliminated by future legislation. And would you invest in a corporation that admits it will lose money within five years and run out of capital just over 20 years later? Even a mediocre stock market may be better.
Simply put, Social Security is unsustainable. So, which is more prudent? Or the Ponzi Scheme? Which is the greater gamble?
And Another Black Conservative takes note of what can be deduced from Chris Christie's ever increasing popularity in bluest of blue New Jersey:
If Chris Christie can make the hard choices in a blue state like New Jersey and not suffer from it, then national Republicans need not worry about making the hard choices when they take control of Congress. The American people have pretty much figured out that the bill for decades of reckless spending has come due. They are pretty much ready to take the harsh medicine needed to put our financial house in order. All that is required is a dose of honesty from Washington and change in the national narrative.