People are nervous. The stock market has taken a hit. Some folks say that shows how dangerous it would be to allow people like you to control more of your own money so you can better plan your own retirement. Risky scheme, as Al Gore told us. Better to let the politicians manage it. Yes, the politicians are always super-careful with your money. Well, I’m not convinced.
Sure, no private investment is without risk. But how much riskier to let the government plan our retirement for us! We all know that Social Security funds never were set aside for safekeeping as originally promised. There is no lock box, never was. The program is pay-as-you-go. The U.S. economy is basically very strong. Anyone who has invested in the stock market with reasonable prudence over 30 or 40 years has come out ahead. If some folks find stocks too risky, there are always safer investments available.
Today, federal government workers have an excellent retirement program that allows various choices of relatively safe investments. On the other hand, the Social Security program is a financial basket case. If the feds can’t keep their promises when the economy is strong, do you think they’ll be able to give everybody a happy retirement if the economy really tanks? Government can’t create wealth out of thin air. The government gets their money from you and me. Don’t let politicians scare you. The real issue is who gets to control your money you or them?
This is Common Sense. I’m Paul Jacob.