Submission + - SPAM: Request for Comments - Social Security Trust Fund, 401k, and a Fiat Currency?
Monster_user writes: So FactCheck.org remarks that Social Security funding is typical campaign fare, but a 2018 Snopes article is less clear than an SSWorks post on X (formerly Twitter).
Still this bears some concerns with regards to my financial planning, perhaps more so as I get closer to retirement. I wanted to try tossing something out to the Slashdot crowd for additional insight.
It occurs to me that the national currency of the United States of America is Fiat, which means there is an arbitrary consensus with regards to the valuation of the currency.
It has also occurred to me that Social Security is a tax, and therefore would expectedly take into account any Fiat inflation of the currency at time of retirement. Being a tax it wouldn't be funded from a savings account, or a "trust fund", but rather an equitable distribution based on the economic factors of that time. Something compatible with a Meritocracy.
While pondering on this, and the fear mongering of the Social Security Trust Fund going bankrupt that surrounds me within my community, that the fear mongering sounds like a Stock Broker's grift. Get people afraid of being left behind, and convince them to sign up to keep up with the Joneses, or perhaps the Jetsons, and skim some commission fees off the top.
Here is where my thoughts get interesting, though. If everyone is special, then nobody is. If there is a mass investment into a 401k plan to supplement Social Security, or in direct response to Trust Fund bankruptcy scare tactics to sign up, the net result for that individual is zero. The free market expands to fill the void in response to economic stimulus, similar to that seen during the COVID era stimulus.
However, those left behind by not investing in a 401k plan, are then beset by an inflated economy catering to a retirement class with 401k payouts, while younger generations are afflicted by stagnating wages as the retirement class has shifted power to investors and shareholders which would reduce income into the Social Security program. Having money is necessary to signal need, one dollar one vote, and the effectively reduced buying power of the Social Security and wages would be a point of concern regarding getting markets to supply services and resources at a reasonable price.
Are we, as a nation, shooting ourselves in the foot by promoting 401k plans or other stock based retirement options?
Link to Original Source
It occurs to me that the national currency of the United States of America is Fiat, which means there is an arbitrary consensus with regards to the valuation of the currency.
It has also occurred to me that Social Security is a tax, and therefore would expectedly take into account any Fiat inflation of the currency at time of retirement. Being a tax it wouldn't be funded from a savings account, or a "trust fund", but rather an equitable distribution based on the economic factors of that time. Something compatible with a Meritocracy.
While pondering on this, and the fear mongering of the Social Security Trust Fund going bankrupt that surrounds me within my community, that the fear mongering sounds like a Stock Broker's grift. Get people afraid of being left behind, and convince them to sign up to keep up with the Joneses, or perhaps the Jetsons, and skim some commission fees off the top.
Here is where my thoughts get interesting, though. If everyone is special, then nobody is. If there is a mass investment into a 401k plan to supplement Social Security, or in direct response to Trust Fund bankruptcy scare tactics to sign up, the net result for that individual is zero. The free market expands to fill the void in response to economic stimulus, similar to that seen during the COVID era stimulus.
However, those left behind by not investing in a 401k plan, are then beset by an inflated economy catering to a retirement class with 401k payouts, while younger generations are afflicted by stagnating wages as the retirement class has shifted power to investors and shareholders which would reduce income into the Social Security program. Having money is necessary to signal need, one dollar one vote, and the effectively reduced buying power of the Social Security and wages would be a point of concern regarding getting markets to supply services and resources at a reasonable price.
Are we, as a nation, shooting ourselves in the foot by promoting 401k plans or other stock based retirement options?
Link to Original Source
