This brought up enough discussion that some things deserve to be addressed in a venue more public then the comments section. I will address as much as I can in no particular order. Here it goes.
First of all I did not mean anything seriously bad to the older folks who read the blog or your peer group. I poked some fun but it is just that, fun. I take a few friendly shots at just about everyone given the right setting. I am enough of am asshole that if I wanted to say something really mean I would.
As for the concept of raising the withholding I am for it but the max in terms of payout should also be adjusted in some way. Tweaking the max amount people contribute could be worth looking into. That being said it almost surely will not be a permanent solution. I don't think anything but a change of the status quo is realistically going to lead to a permanent solution.
As it has been said what I mentioned doing would almost surely not be a permanent solution to SS solvency issues. We pretty much did that stuff before and it bought some time but wasn't a permanent solution. We seem to complain about how the things we are willing to stomach can't fix things but we will not accept more radical solutions to the problem at hand.
The most interesting idea that came out of the comments was what happened in Chile with their SS plan in the 1970's. If you are as familiar with that as I was three hours ago then read this. I think that is sort of idea is probably the best chance of making our system viable but I still have the same big question/ concern I had about going to a privatized system before reading that article.
How did Chile deal with the ponzi structure of pay as you go plans? The money needs to keep coming in or those drawing benefits will be shit out of luck. For a system to be privatized my money needs to be going into my account. If my money is going into some sort of a privatized/ funded system either I would also be paying for a generation of retirees or they would be up a creek without a paddle. The government could pay the retired generation (ha ha ha ha ha this is such a funny joke) with money they save from somewhere else (an even funnier joke). Maybe to skip the trouble and expense of printing checks they could do it all direct deposit.
I don't think I will talk about this anymore. Maybe the answer is that we are all screwed.
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