Private Social Security Now Okay?

[rjwjr]

In his speech to a joint session of Congress late last month, President Obama said that we must begin a conversation about how to strengthen Social Security “while creating tax-free universal savings accounts for all Americans.”
The notion of a “universal” savings account is tantalizing. It suggests two possibilities: Giving everyone, no matter how large their employer, an easy way to save some money when they receive a paycheck, and eliminating the alphabet soup of 401(k)’s, I.R.A.’s, 529s and other accounts that we all have strewn about our financial lives. (full link here http://finance.yahoo.com/focus-retir...retirement-IRA )

So, let me get this straight. Ex-president Bush wants to privatize a portion of social security and the Dems are all up in arms. President Obama wants to take an additional 3% deduction from paychecks as a "universal savings account" and the idea is deemed "tantalizing". This proves two things IMO...
1] Our political system is partisan to the point of being inefficient at best and damaging at worst. Come on, this is basically the same idea just packaged differently.
2] It pays to be a great communicator like Obama rather than a bumbling orator like Bush. I mean, even I'd rather have a "tax-free universal savings account" than "privatized social security", although I know I'm actually going to be forced to deduct 3% more from my paycheck for the first one.

I can't wait to watch the democratic leadership peacocking around as saviors of the common folk on this one, knowing full well they fought it tooth and nail when somebody else was going to get the credit.

[don]

Re: Private Social Security Now Okay?

1] Our political system is partisan to the point of being inefficient at best and damaging at worst. Come on, this is basically the same idea just packaged differently.

2] It pays to be a great communicator like Obama rather than a bumbling orator like Bush. I mean, even I'd rather have a "tax-free universal savings account" than "privatized social security", although I know I'm actually going to be forced to deduct 3% more from my paycheck for the first one.

I can't wait to watch the democratic leadership peacocking around as saviors of the common folk on this one, knowing full well they fought it tooth and nail when somebody else was going to get the credit.

Washington is bi-partisan on all the issues they're paid to represent. That's why the Culture Wars were invented. So there would be issues on which they could disagree without causing any harm to their constituents.

[we_are_toast]

Re: Private Social Security Now Okay?

Bush plan diverted existing social security to accounts that could gamble on things like CITI and AIG. Obama plan is in addition to existing social security with very limited and very conservative choices.

It's like saying betting on the ponies is the same as putting money in a money market account.

A very disingenuous attempt to make the 2 plans sound the same.

[don]

Re: Private Social Security Now Okay?

You have to start somewhere. FIRE's stake in SS privatization isn't apparent to you :rolleyes:

[phirang]

Re: Private Social Security Now Okay?

They need a bidder for the stock and treasury market, ya know.

It's another tax on J6P.

[karim0028]

Re: Private Social Security Now Okay?

They need a bidder for the stock and treasury market, ya know.

It's another tax on J6P.

I think instead of Joe Six Pack (J6P); Joe Dumb Ass (JDA) has a clearer ring to it....

[rjwjr]

Re: Private Social Security Now Okay?

Bush plan diverted existing social security to accounts that could gamble on things like CITI and AIG. Obama plan is in addition to existing social security with very limited and very conservative choices.

It's like saying betting on the ponies is the same as putting money in a money market account.

A very disingenuous attempt to make the 2 plans sound the same.

It wasn't meant to be disingenous. The ideas ARE basically the same in that they are both a way to use private investments as a means of shoring-up social security.

Other than that they differ in the typical dem vs rep manner. The dems' plan introduces a payroll deduction (basically another tax) and they will force the sheeple into a very few select investments, whereas the reps' plan didn't include a new tax and allowed the people more freedom of choice.

I just thought the irony was funny on the surface, without wanting to debate the merits of each idea. My bigger concern is that the current gov't tries to tell me what to do with my current 401k/IRA, either by comingling it with social security (a la Argentina recently) or some other stealth method like forcing a certain percentage to be invested in treasuries as my civic duty or some such crap.

I typically don't care what other people do with their time or money, until they start telling me what to do with mine.

[cjppjc]

Re: Private Social Security Now Okay?

It wasn't meant to be disingenous. The ideas ARE basically the same in that they are both a way to use private investments as a means of shoring-up social security.

Other than that they differ in the typical dem vs rep manner. The dems' plan introduces a payroll deduction (basically another tax) and they will force the sheeple into a very few select investments, whereas the reps' plan didn't include a new tax and allowed the people more freedom of choice.

I just thought the irony was funny on the surface, without wanting to debate the merits of each idea. My bigger concern is that the current gov't tries to tell me what to do with my current 401k/IRA, either by comingling it with social security (a la Argentina recently) or some other stealth method like forcing a certain percentage to be invested in treasuries as my civic duty or some such crap.

I typically don't care what other people do with their time or money, until they start telling me what to do with mine.

You can see the investment aternatives will be 3 year bonds, 5 year bonds, 7 - 10 year bonds. All the diversifiction anyone could want. Why don't they just come to your house and take all the money they can find?