December 29, 2004
What More Does One Need To Know?
He recorded all the payroll taxes he paid into the system (including the matching amount from his employer), tracked down the return the Social Security Trust Fund earned for each of the 45 years, and then compared the result with what he would have gotten had he been able to invest the same amount of payroll tax money over the same period in the Dow Jones Industrial Average (including dividends).
To his surprise, the Social Security investment won out: $261,372 versus $255,499, a difference of $5,873.
The article notes that he (Stanley Logue of San Diego) didn't take into account administrative expenses -- only about 1% for Social Security (!), and, uh, considerably more for Wall Street brokers.
The Social Security "crisis" is unmitigated hokum anyway. But this finding alone should (har har) close the book on the privatisation option.
Posted by Eddie Tews at December 29, 2004 04:52 PM
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