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Original Content at https://www.opednews.com/articles/Solving-The-Social-Securit-by-Harold-Novikoff-Banks_Social-Security_Social-Security-Privatization_Social_security-190618-908.html (Note: You can view every article as one long page if you sign up as an Advocate Member, or higher). |
June 18, 2019
Solving The Social Security Riddle
By Harold Novikoff
There are better ways to safeguard and enhance the Social Security fund without entrusting it to greedy Wall Street manipulators. but they would require fundamental changes in the structure of government financing.
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In his recent article, " A Wall Street Boost For Social Security", Gerald Scorse (OpEdNews 6/16) points out the advantages of investing some of the $2.8 trillions of Social Security funds in the stock market instead of in low paying government securities. Warren Buffet backs up this notion, as did the Bush/Cheney administration and other republican administrations before. Without alterations to the program, such as raising Social Security taxes, taxable limits on earnings and age qualifications, or lowering benefits, the current program is projected to run out of funds by 2034.
According to Scorse's sources, the S&P stock market index shows an annualized gain of 15% since 2009. The SS fund would have benefitted if it had been invested in the market instead of government securities during this period. But what would have happened to the value of the Social Security fund if it had been invested in the stock market before the 2008 recession when the market dropped 33%? There are better ways to safeguard and enhance the Social Security fund without entrusting it to greedy Wall Street manipulators. but they would require fundamental changes in the structure of government financing.Veteran, retired from several occupations (school teacher, technical writer, energy conservation business, etc.) long-time Sierra Club member