Machiavellian on 03 October 2019
| Baalzamon said: I don't get what you mean? I would "trust" them to invest in one thing over the other? I don't think laws have been broken regarding Social Security and the investments it currently utilizes...so why would they start to break the law if it was instead mandated that it invests in the stock market? And yes, it is suggesting a radical change to the system. Similar to how 401k, IRA, pensions, etc all invest in things that far exceed the returns of just some crappy government bonds...there is no reason Social Security (which is really just another retirement system) doesn't also invest in the broader stock market. |
Simply, do you trust a government employee to do investment of your SS benefits when they do not have nothing to gain or lose compared to having it managed by a Profolio firm. The currently system doesn't rely on that and who would they hire for this type of position. Not sure why you brought up breaking laws and this angle, not really thinking along those lines. I am thinking of competency.
As to the second paragraph, its the reason why the government isn't looking to go down this route because they cannot sell their crappy bonds that yield something around 2.5%. Its how the government pays down certain debt so if there isn't a system to replace it, its probably not going to happen.
