Thursday, October 28, 2004

I thought I knew a lot about social security until this

In this tech central article, Arnold King addresses four different myths about social security.

The Pension Myth- I knew this already.

The Transition Cost Myth - I still do not understand this at all. I can see how they cost of transitioning would starve social security and the government. This would cause them to either raises taxes or reduce spending, either way it is something that needs to be done.

If any one could point me to any information where this is discussed in detail, I would appreciate that. I would need economic definitions, account definitions, and explanations why one debt is better than another one.

The Baby Boomer Myth - I at first thought this was a load of crap, but as you read on and look at the pictures you begin to understand that they Baby boomers are just starting the trend he talks about. Which only further reinforces my feelings.

The Medicare Myth- I have never head of this myth before, but it is interesting. I have always ignored Medicare, because it does not have as big numbers beside it on my check like social security.

Pop quiz:

Why was Social Security introduced?

If you know the history you will understand that Social security once had a real purpose and a valid reason for existing, and that it has outlived that reason. Also if you know your history, you will admit that it is feasible we might need this scheme once again, but if it ever came back it would look a lot different because of the worker to retiree ratio.


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