By using this site, you agree to our Privacy Policy and our Terms of Use. Close
sc94597 on 02 July 2015
Edit Thread
enlightenedmaster said:
sc94597 said:

In this case the government prevents the fraud. In Australia's system they essentially force people to get the equivalent of a 401k. Social Security is less secure because of changing demographics influencing the payout.

Govenrment can never really prevent fraud fully.

Most governments are themselves corrupt and do most of the fraud.

 

Forcing people to get 401k and regulating is good

but still the government security isn't there,it only comes because govenrment cannot do an outright fraud as people will overthrow the govenment so they keep in line and maintain a certain standard and security

 

Social Security isn't less secure,you really have to look where and why demographic trends change and how to maintain the system.

Every country goes through a 250year cycle of Country formation aka USA 1776 and today 2015(close to 250years).this is an empire cycle where country grows and then decays

at the start demographics,production,economy grows and then at the end of the cycle it dies or is rejuvenated by an Empire-building(which USA is doing now - mexicans,muslims,indians,chinese,europeans,east,europeans coming in) and a revolution of political system

even changing demographics problem can be easily solved,the problem in USA is too much money printing and devaluing of the Dollar

I don't disagree with much of what you said, but the bolded is precisely why personal accounts are much more appealing than a trust fund. The reason why the U.S needs to do this borrowing (through printing) is because they don't have enough revenue for all of the social programs and military endeavors. Social Security is a contributor to this, and while it was a great deal when it was first created, it is a pretty raw one which is almost a guaranteed malinvestment today. Like you said, fraud will still occur either way, but as evidenced by Australia and Chile there is a lot of growth in these personal account systems and a lot of security from politics and demographics changes.

I do disagree that the government can't commit fraud though. It can and does, and overthrowing them is a lot less likely than the government holding a corporation accountable through the justice system if they can't keep their contracts (which is also unlikely, but not as much as people actually overthrowing the government.)