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View Diary: Open thread for night owls: How blogger Duncan Black made expanding Social Security respectable (149 comments)

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  •  The only way to claim "I'll never get it back" (1+ / 0-)
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    Calamity Jean

    is to assume that historical rates of returns on equities never vary over the life of any particular worker (so that you don't retire during a market downturn), that you can discount all the survivors and disability components of Social Security to zero when calculating ROI, and that it is only important to calculate PV of the principal at time of retirement as compared to initial benefit and not to give any numeric value to the inflation protection afforded by annual COLA's.

    Not only do almost all workers who survive to retirement get all of their money back, they also get it at a cheaper cost than it would require to provide the same inflation protected annuity cum survivors/disability insurance. True enough this calculation becomes a close thing for people who earn near the cap during the last years of their working life, which is why I almost alone among my progressive fellow Social Security Defenders am leery of raising the cap. Because currently only a tiny, tiny fraction of people actually come out behind on a PREDICTABLE at point of entry into the system basis between Social Security and private account alternatives.

    But the same people who were born on third base, ended up crossing the plate without injury and so insist they were invincible all along and never needed government income or health insurance because 'Look At ME!' will never accept this argument. Because as we all know rich kids never ski into trees and become permanently paralyzed. And would eschew any posssible government help if offered. You know 'Freedom!!.

    SocSec dot.Defender at - founder DK Social Security Defenders Group

    by Bruce Webb on Fri Nov 01, 2013 at 01:27:28 PM PDT

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