I like this comment because it seems well thought outA couple of points:
> When any self-interested person plans for a far-off expense, they will save up principle, and manage it to yield interest as well.
The reason the current system came about is that people were unable or unwilling to save. Half the money that goes into SS comes from your employer, a hidden benefit to most. You think you're gonna get that money in returned wages? Do you think that people are MORE likely to save today than they were in the early 30's? My parents outlived their nest egg. Even SS isn't completely keeping up. How many people dying on the streets are you willing to tolerate. This isn't theory, this isn't being dramatic, this is what is starting to happen today with medical expenses. It's largely hidden, but it happens NOW. We need more social insurance, not less.
> ..instead of investing or growing funds on behalf of the people, the congress and administrators spent down the SSI nest egg leaving no principle to manage. Today it makes payments only as money comes in.
It is not strictly the case that SS doesn't invest, even today. It just chooses low risk investments. Copy pasta - (Social Security does not invest in private stocks or bonds because it operates on a pay-as-you-go system designed for security, not high returns, and is restricted by law to investing only in special-issue U.S. Treasury bonds. The system acts as insurance against poverty, requiring a guaranteed, non-volatile asset base to pay promised benefits.The combined Social Security trust funds have approximately $2.56 trillion invested entirely in special-issue U.S. Treasury securities. )
Fundamentally, if you have a problem with the way the government manages the money, fix the management, don't blow up the system. We've been blowing up the system for decades, doesn't seem to be helping at all.