What Social Security Was Supposed to Be              ...

What Social Security Was Supposed to Be.   

If Social Security  had been properly managed, today, the public would have a 40 trillion dollar asset.   Instead, we presently have a 40 trillion dollar debt.   

Imagine for a moment that that investment fund 
actually existed today.   

Imagine that Social Security had that forty-trillion-dollar investment portfolio.   Imagine that  investment making only a meager two and one-half percent annual interest.  Even at that ridiculously low rate of return, the return on investment would be a trillion dollars a year in free and clear money that would be available for retired Americans.   That's about double what is currently (2005)  being paid to Social Security recipients.   There are about 48 million benefit recipients.   Even at that extremely low, two-and-one-half percent rate of return, payments from profits would average over $20,000 per year per person.   

Endowment funds on average make about eleven percent return on the invested money.   Imagine the 40 trillion dollar Social Security investment making only seven and one-half percent return.  The would give each retiree, $60,000 per year per person.   That's about six times  what is currently (2005)  being paid to Social Security recipients,  and, unlike today, not one nickel of that money would be coming from taxes.    

For the full text of this section, readers are directed to:

http://www.EconomicSanity101.com/Rt-3-Protecting-retirement-funds.html#UnitedStatesSocialSecurity 

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Notes and References