Re: Solution to Soc Sec problem

royls_at_telus.net
Date: 01/25/05 

Date: Tue, 25 Jan 2005 01:32:43 GMT

On Mon, 24 Jan 2005 02:20:22 GMT, Mason A. Clark
<masoncNOT@THISix.netcom.comQQQ> wrote:

>Have the government invest the SS fund in private stocks
>and bonds, rather than in treasury bonds as it does now.
>
>That is to say, invest in the growth and profits of the
>economy.

Treasury bonds are based on the taxable capacity of the whole economy
rather than particular corporate stocks. So SS's T-bonds are
_already_ keyed to the growth of the economy.

>This would be safer than letting individuals do the
>investing and possibly loser their savings.

Right. SS is like insurance in that the risk is spread around, so the
returns are more reliable.

>And the government could negotiate with Wall Street
>for very low commissions
>
> Why not? What's the flaw(s)?

Why not just let private interests invest for their own maximum
profit, and repay SS's treasury bonds by taxing the resulting larger
economic pie?

-- Roy L

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