What would happen if U.S economy lost 1/3 its wages?

[Kasz216]

mrstickball said:

richardhutnik said:

mrstickball said:

...And the savings would go to everyone in the 2/3rds to create new businesses to employ those needing the handouts?

So, would more jobs be created for those receiving handouts than are currently receiving them?  Part of those who get the money are currently on social security, so that would then mean that no one would no longer receive social security and never retire, right?

Care to name what KIND of jobs would be created?

Here's the problem with our current system:

Services such as Medicare and Social Security are massively, and I mean MASSIVELY flawed. In the case of Social Security, people that put their money in as a worker for 30, 40 or 50 years do not receieve a decent return on the money they are forced to put into the system. As it stands, any money that is put into the system is converted to our government bonds, and then returned at an interest rate of 2.32% APY. Because of this, people cannot live off of what they put in. Instead, money is taken from people at the higher end of the SS bracket (those near the $100,000 cut-off) and given to those that put less in.

Therefore, the 8.5% that you and I put in, is poorly utilized. The money we put in the system does virtually nothing other than bloat the size of government which created a false economy, and fuels politicians shameful guarentees of increasing government services without raising taxes.

If we did not have such a system, and instead allowed citizens to invest into other means - stocks, bonds, property, investments via venture capital, ect, we would have a much better system.

Or we could do what Norway does.

They have social security and stuff as well... the difference is, the they invest it, unlike the US who just buys it's own bonds and promises to pay it back later.

Norway gets an average of like 14% for it's investments.