While I realize I'm not really part of this conversation at the moment, I have to call BS here.
Private money relies on economic factors that public money does not. Public money is essentially white collared blood money. They do like the mafia, only less romantic.
I don't know how to respond. I don't know what white collared mafia blood money is
It is not their money. They treat is as such, but it is not theirs. The reason it has become insolvent is because it has been pillaged and raped, but now the demand for a reform is being misconstrued as some sort of adjustment for the times, when it reality its been royally fucked up all along, and doesn't ultimately even have a prayer of profitibility or sustinence. This is because it never had to stand on its own two feet, it never was organic, and it is ultimately a crap system, always will be.
First, SS is not "insolvent". Its fully funded for decades to come. If you're talking about the trust fund, I'll adress that shortly.
I've been talking about fiscal reponsibility. I haven't been talking about profit versus non-profit. Enron was fiscally irresponsible. They couldn't manage their shareholders money. SS have been fully funded, fiscally responsible, and administered relatively efficiently for 70 years.
To suggest that it's easy for a public entity to be fiscally managed well, I refer you to the Reagan and Bush 43 presidencies. Those were characterized by massive deficit spending and fiscal irresponsibility. Debt and deficit spending are a choice. There's nothing inherent about a public entity that makes it "easy" to run fiscally responsibly. Just as the same principle applies to a profit-making entity.
This is my money, I cannot choose whether or not I can put it there. I have no choice, so I am damned well going to expect they don't do with it what they've been doing for decades. They TAKE my money to "Protect me". And then it becomes a bottomless pit. No, it is not the same standard as a private industry.
All financed by IOU's. Open your eyes man.
I understand you want SS to be eliminated.
However, I think that when you turn 67 years old, you'll be exactly like tens of millions of other republicans who spent their lifetime railing against SS. : you'll be happy to be receiving those weekly checks. And the beauty of it, is that SS is like a pension: a guaranteed benefit that doesn't run out - it pays until the day you die, no matter how old you live to
As for the "IOU' part - your wrong. Currently SS is fully funded. It's a direct transfer of money from FICA taxes to retired americans. There is no "IOU" involved.
You're perhaps thinking of the trust fund - the excess FICA taxes invested in US treasuries. Beefy, unless you use the trust fund to buy gold bars, and stick them in a vault in fort knox, then
anything you do with the trust fund is an IOU, or a loan. US treasury notes are just loans. As are equities or bonds.
Somebody is going to take that money and spend it, with the promise of paying you back at a later date. Now, either the chinese, the saudis, or the US government are going to pay back the loan on those treasury notes. If you choose to invest the SS trust fund in municipal bonds, then (likewise) you're
loaning money (aka, IOUs) to a municipality and assuming they're going to pay you back.
Personally, I'm open minded about investing a portion of the SS trust fund in stable equities or bonds. But, its the same principle as US treasury notes - its a loan, and the anticipation is that you'll be paid back. As far as the US government using the SS trust fund, in the form of treasury notes, to fund government activities, I think it would be great if those investement could specifically be directed towards spending on infrastructure, tranportation, education and research: those are areas of public spending that acutally grow the economy, making it more likely that the US treasury notes can be paid back through increased economic activity and revenue, rather than raising taxes. But, I'm not an expert on it, so I don't know if that's possible.