There has been plenty of talk about how a significant chunk of retirement funds have disappeared during the past month or so, but that does not mean that we should not consider moving towards getting government out of the retirement funding business.
Ed Morrissey over at Hot Air writes today about the stock market decline and the Bush administration’s plans to offer the option to take some of your social security cash and invest it in the market. Of course, many like to speak of seniors this winter who would have died of starvation if the Bush plan went into place. Of course, it’s a complete lie.
First, the people who were close to retirement weren’t eligible for privatization anyway. In fact, the first stock purchases under the 2005 plan wouldn’t have been made until next year, and those only for people whose retirement dates were still years away. Anyone within ten to fifteen years of retirement had to stick with Social Security with Bush’s transition proposal. Having that money flowing into the markets now would have provided some welcome capital flow during a recession, and the portfolios could have bought some real bargains.
The real problem will be the one that has been ignored for more than 15 years. Over at Conservative247 back in October, I wrote about the next big bailout on the horizon.
I’ve been thinking about the bailout again. I’ve been busy, it makes me mad, so I write a little about it and leave it at that. Now I’m thinking about the next government emergency bailout – Social Security.
It will come up on us quickly. It will be a crisis. We may only have days to respond. Congress will be forced into immediate action. If you think $700 billion was a crap sandwich, what do you call a $6.5 trillion dollar emergency bailout? A crap Las Vegas-style buffet?
I went on to discuss the 2008 Social Security Trustees Report Continues to Show the Urgent Need for Reform that was written by David C. John from the Heritage Foundation. It’s a good, detailed read. Enjoy.