Bush-plan flaw: Cash would sit
Philadelphia Inquirer | 02/13/2005 | The Economy | Bush-plan flaw: Cash would sit
The biggest flaw in the Bush Social Security plan is that our contributions to our private fund won't be deposited for more than a year. Between 15 and 22 months is the number quoted.
Over a year. Is this insane? Do I really want my money to sit for over a year. Would any sane person do this? No.
The other flaw is that no one has addressed the "Wall Street Factor". This is my own term. The "Wall Street Factor" is the amount of money Wall Street will receive in fees for investing the trillions (that's a 1 with 12 zeros) of dollars that Social Security private investment accounts will generate (a year after its deducted from your paycheck).
I think that Wall Street should receive fees that are 15% greater than it costs them in labor to process the investments. Why should Wall Street receive a windfall from the change to Social Security?
The biggest flaw in the Bush Social Security plan is that our contributions to our private fund won't be deposited for more than a year. Between 15 and 22 months is the number quoted.
Over a year. Is this insane? Do I really want my money to sit for over a year. Would any sane person do this? No.
The other flaw is that no one has addressed the "Wall Street Factor". This is my own term. The "Wall Street Factor" is the amount of money Wall Street will receive in fees for investing the trillions (that's a 1 with 12 zeros) of dollars that Social Security private investment accounts will generate (a year after its deducted from your paycheck).
I think that Wall Street should receive fees that are 15% greater than it costs them in labor to process the investments. Why should Wall Street receive a windfall from the change to Social Security?
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