Soc Sec: How do private investment accounts solve the problem?

ta6bx_at_yahoo.com
Date: 02/11/05 

Date: Fri, 11 Feb 2005 02:52:45 GMT

Supposedly when SS was started there were many people working and few
people collecting, say 15 working to 1 collecting. (Don't know the
actuall numbers).

Now there are maybe 3.5 working to 1 collecting and in the future
there will be 2 working to 1 collecting.

Obviously this is a problem for SS. But, how do private investment
accounts solve the problem? If there are 2 people working for each
retired person, these 2 have to produce enough goods and services for
3. It doen's matter how the retired (unproductive) person gets money
to purchase their share of the national product. If the retired one
taxes the productive two, those two have less to spend on goods and
services and the retired one gets to spend what has been taxed.

Now, If instead of taxing, the retired person has a big investment
account you have three people spending money to aquire the product
produced by two. The working two still get "taxed" in a way because
they cannot purchase all of their product.

In the extreme say every one was 25 years old and every one saved.
When they all retired on the same day, they would have enormous
accounts. They would also all starve as no one was producing any food
.
It seems that the actual problem is the ratio of non-productive to
productive, not how the non-productive finance their
non-productiveness.

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