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Real Returns for Private Investments

Some say the government should invest Social Security's Trust Fund in private investments instead of creating personal accounts for individuals to choose the investments that are right for them. There are two reasons (at least) why government investment is misguided. First, it would give the government ownership and control of a large segment of the private economy. Other countries tried this in the 20th century and failed horribly. But even if you don't believe that socialism is intrinsically a bad thing, there's another reason to oppose government investment that's no less compelling: the government gets poor returns.

Social Security Can't Pay Promised Benefits
A History of Payroll Tax Increases
Fewer Workers, More Retirees
Seniors Are Living Longer
Americans Are Getting Older
The Trust Fund

Growth in Federal Spending
Real Returns for Private Investments
The Retirement Iceberg Is Approaching
To Pay Scheduled Benefits, Payroll Taxes Would Have to Increase Over 50%
Delay Increases the Cost to Fix Social Security
Drastic Benefit Cuts When the Trust Fund is Exhausted




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