DAVID BROOKS IN THE NYT MAKES THE FOLLOWING SUGGESTIONS ON SOCIAL SECURITY REFORM: (BELOW FIND MY REPLIES.)
BROOKS SAYS:
First, Social Security reform should liberate our kids, not shackle them. It should eliminate the fiscal overhang so they have the money to tackle the problems that will arise in their own day.
Second, the reform should be transparent, so that people can see what kind of return they are getting on the money they put into the system. People should have information about their own lives.
Third, it should enhance people's control over their own retirement. In a self-governing democracy, citizens should do for themselves what they can do for themselves.
Fourth, people should be encouraged to work longer. In an age in which many live into their 90's, we should be making better use of people in their 70's and 80's.
Fifth, we need a savings revolution. The plan should encourage the nation to save more, to create more capital for America's future greatness.
GLOOM AND DOOM REPLY:
First, there is no evidence that private accounts will "liberate" anyone. It is likely that our kids will end up just as broke as we are if the rich continue to loot the US economy. And, if the US economy doesn't straighten up on jobs and trade, none if this will matter anyway. Rather than running away from the problem of THE NEW AMERICAN POVERTY, we should be figuring out how to solve the trade deficits caused by free trade and global greed, which are the REAL PROBLEM that no one, including Mr Brooks wants to talk about!
Second, the so called return on investment is not assured. Let the US government invest 4% of Social Security in stocks for a few years to "prove" the theory of "better returns." This is simply an attempt to get working class people to support the financial markets for the benefit of the rich; not to "create more Republicans" which is an absurd argument anyway. Working Class stock market plungers are not Republicans longer term; they are often broke and looking for a job!
Third, Social Security should be "means tested" in the same way the payroll tax cuts off at the higher levels of income. Those with "passive incomes" above a certain amount--should be cut off from Social Security benefits. In the same way they "quit paying" payroll taxes, after reaching a certain level of income while working.
Fourth, Working longer is an absurd notion. We need to get seniors OUT OF the work force so those jobs can be held by younger people with families to support. The entire rational for retirement schemes in the first place was to remove older people from the work force. And besides, no one is forcing people to retire. Those who want to work can. Those who don't or can't work should be allowed to make that choice themselves. Why should an ill or otherwise incapable senior be forced to work just so the rich can keep more of their money?
Fifth, Saving is wonderful. But America is the SALES FLOOR of the world now. While China is the NEW FACTORY FLOOR. If the global economy can handle the recessionary consequences of more American savings fine!
But don't look for those oft touted amazing returns on stocks and other investments if the American savings revolution does occur.
THE TRUTH IS THAT THE SOCIAL SECURITY REFORM IS JUST ANOTHER SMASH AND GRAB BY THE REPUBLICAN RICH INTENT ON LOOTING THE AMERICAN ECONOMY TO THE BONE IN THE NEXT FOUR YEARS!
