Comment: This is an isue that is

(See in situ)


This is an isue that is

This is an issue that is always going to confront society and government. It is very easy to say, "let individuals handle their retirement! They will do what is best!" It is equally irresponsible

The problem is that your bad investment choices invariably affect others. That is what happened during the great depression, when poor people and old people, due to very little fault of their own (or what I would call fault), lost their savings, and were out on the streets. They had nothing saved for their retirement.

So what could society do? Let them starve on the streets? Well, that will cause housing prices to drop. A large part of the economy suddenly lost buying power; that will hurt everyone. Theft and crime will go up. And, of course, the fact that there are people dying on the streets will cause poor sentiment, furthering an economic downturn.

I guess you could give them welfare. House them in government poorhouses. Except, those aren't free. It is coming out of our tax dollars. That in turn hurts everyone, shrinks buying power, and hurts the economy.

This is what 401Ks and social security are about. Help people have a retirement so that they can rely on themselves; they can rely on their own contributions. They hurt no one else. Social Security and Medicare are the "safe" parts of it: they ensure that even if the markets crash, elderly people will have SS as a fallback and Medicare to take care of their healthcare. 401Ks exist to expand that buying power so that individuals will be encouraged not to spend their entire paycheck now, but to put it away for the future.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a