[OT]America. The land of the not-so-free (economy)

[James A. Kuzdrall]

On Friday 07 January 2005 07:59 am, Will Johnson wrote:
> > I can hardly think that people controlling their own money, and
> > getting a decent rate of return on it, is a bad thing.

    This discussion looks at Social Security from what appears to be the 
inexperience and optimism of youth.  Lets try a different perspective.

    First, if I understand it right, Medicare is breaking the budget.  
The portion paid for SS is solvent.

1. The Social Security system is insurance, not a savings account.  It 
spreads the risk of uncertain health and longevity over the population.

   a) How much money will you set aside for medical care?  My wife had a 
$300K heart valve replacement.  I had a $250K operation.  Bad luck, to 
be sure, but it could be yours.

   b) Private insurance?  I am in my early sixties and I pay $20K per 
year for a $2000 deductible for the two of us.  That is the going rate, 
and it has nothing to do with past expenses.  Are you aware that your 
employer must pay that for age 55+ employees?  With no medicare...

   c) How long do you plan to live?  With bad luck you will live past 
your savings.

   d) It is recommended that you have a minimum net worth of $300K per 
person plus own your house outright to get through retirement with SS 
as it is.  How many of you wise investors are on track to have that 
money tucked away?  Going to make it all in the last few years?

2. What is stopping us from putting 7% of our income in the stock market 
right now?

3. Capitalism depends on growing markets or increased consumption to 
give an investor dividend.  What happens when the population saturates 
and the natural resources wane?  Might that not happen in your time?  
The stock market will likely have a zero sum capital growth in the near 
future.  Also, America is rapidly losing its once large share of 
markets and companies.  Will we be allowed to invest in China, India, 
of Europe under Bush's plan?

    A few things to think about.  

Jim Kuzdrall