One thing to consider. George W. Bush wanted to see Social Security benefits be put into the market, to give recipients a better return on their money. Democrats pushed back, saying it would put recipient's assets at risk. This could be done, through an annuity or Treasury backed securities, with guaranteed income at no risk. The bond market movements could adversely put fixed incomes at a disadvantage. This move would offset this. I would like to see a voluntary program, as nothing more than a trial run for all to see how it would work...
Don't be surprised if Trump calls for privatizing Social Security. And with it Democrats screaming bloody murder. This is a possibility. And it would work. A guaranteed 3-4% return is not out of reach. That would give recipients a better chance of keeping up with inflation. Interest rates in a robust economy will go up.
If Trump seriously goes down this path, I would like to see him go on TV, go into seniors living rooms, and explain why he wants to do this, how it would be carried out, and that this is done at no risk to them. That it is in their best interests that this is proposed. So to not scare the bejesus out of them...FDR's fireside chats went a long way to gaining America's trust, and was a constant reassurance ...this would be similar in nature...
The debt of 20 trillion isn't the worst. We are looking at 100+ trillion additional before 2040 if we don't get our entitlement programs straightened out. That can is too big to kick down the road...
11/13/2016 11:36 PM (edited)