Question Regarding Social Security

[YIMA]

Hypothetically speaking, if some sort of privatization is passed, it's my understanding that just because it's available doesn't mean you have to participate. In other words, if you want to continue you own personal SS account as it currently is you can, you don't have to invest in the market or bonds or whatever, you can just maintain the status quo and it would be as if nothing happened. Is this correct or am I misinformed?

(Stepping out for a few minutes, brb)

[MikeG]

1. They will make you participate by cutting benefits.

[YIMA]

6. I think I get it.

So in other words, you can't be MADE to participate, but the incentive to do so is there.

It's also my understanding that if things continue as they are, we'll only get 70 cents on the dollar eventually anyway in 40 years or so. In order to avoid that, either the FICA, etc will have to be increased, or the retirement age will need to be raised again, or the ceiling of $85K will need to be raised, or benefits will have to be cut, or more than likely a combination of all these to some degree. So how much longer can the country continue to do these incremental fixes until there's no more solutions?

I'm really trying to understand this.

[papau]

2. ALL benefits are cut for everyone - but if you participate in priv accts

they are cut more.

You can NOT just maintain the status quo

You can avoid private accounts.

But you WILL BE SCREWED no matter what your decision is as to private accounts.

[bryant69]

3. I'm not 100% sure about this

But it's sort of a wash anyway. Even with cutting benefits on those who choose not to participate, the program will still run up an enormous deficit which will necessitate more cuts and, probably, shutting it down.

Which is sort of the goal anyway.

On the other hand there is a way we can avoid being screwed. Don't allow this bullshit program to be enacted. Fight against it. Tell your friends, learn about it and write to you congress people. Already Republicans are nervous about supporting this program--Most Democrats are holding firm--Bush might not be able to pull it off! SO keep up the pressure.

Bryant
Check it out --> http://politicalcomment.blogspot.com

[papau]

4. You can take to the bank that under 55's get benefits cut - without

regard to a yes or no decision on private accounts.

But I agree stopping the program change ends the problem.

But this is so badly designed - as a "loan" program - that I suspect Bush does not want it to pass -

and that it is just setting up a GOP wedge issue for future elections that the GOP feel will help get them the vote of the under 30's.

[vpigrad]

5. Why do you say only under 55?

You're buying into Bushie's scam. You trust him way too much for someone that's on this site.

[bryant69]

7. I know what you are saying

But these seems like jumping in someones throat for no reason. The plan as stated says he won't touch people over 55. That could be true or it could be a lie, but regardless there is more then enough to attack in this plan without just saying that parts of it are transperent lies based (seemingly) on the theory that Bush is a liar.