Social Security Math

[yesthattom]

Gosh, Bush’s plan doesn’t work.

http://www.csmonitor.com/2004/1227/p01s03-cogn.html

For 45 years, the defense-industry analyst paid into the system until his retirement in 1994. But with all the recent hoopla over reform, Mr. Logue, a Massachusetts Institute of Technology graduate, decided to go back and check his own records. Would he have done better investing his money than the bureaucrats at the Social Security Administration?

I’ll save you from having to read the article: Social Security’s investment beat the stock market.

So here’s the update for those that aren’t following the story:

• Social Security isn’t in a crisis.
• In 2042 social security will be short by 20%
• Bush’s plan will cost more than just out-right paying the 20% short-fall for the few years it may have trouble
• The trouble won’t ever actually arrive if demographics shift
• Bush’s plan is to let Wall St. manage your money, like anyone trusts them
• Since social security had started, every prediction that “it will fail soon” has turned out to be false when we got to that year