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Text 4774, 43 rader
Skriven 2010-02-08 00:00:04 av Dale Shipp (1:261/1466.0)
     Kommentar till en text av Bob Ackley
Ärende: Re: Perception
======================
 -=> On 02-06-10  05:24,  Bob Ackley <=-
 -=> spoke to Robert Bashe about Perception <=-

 RB> Very true. Social Security is an entitlement, because you
 RB> are entitled to it. But it is not welfare, because you only
 RB> get what you paid for.

I should have said "you only get it because you paid for it."

 BA> That second sentence is arguable.  One draws out all of the money one
 BA> pays in to Socialist Security (plus the theoretical interest paid on
 BA> those "contributions") in three to five years.  After that point is
 BA> reached one is getting *more* than what one paid for - and Joe Taxpayer
 BA> is footing the bill; AFAIK most recipients of Socialist Security draw
 BA> benefits for  far longer than five years.

I think that your 3-5 year figure is wrong.  I've done the math now.
Simplify the problem by excluding inflation effects.  Consider a middle
income employee who earns $55K per year.  The SS tax contributions on
that income is $6820 per year.  Over a span of 35 years, assuming a
nominal interest rate of 4% and thanks to the magic of compound
interest, those contributions add up to a total of $382K when the person
is ready to retire after 35 years of employment. The SS Pension based on
those earnings would be just under $23K or 1/16 of the money contributed
plus its interest.  This of course does not take into account the amount
of money that people have paid, but never collect (e.g. because of death
at an early age, etc.)

Of course, inflation is not 0, and interest rates flucuate -- sometimes
more than 4% and sometimes less.  All of those things could be taken
into account into a more complicated computer model.  I doubt that it
would come to any radically different conclusion.

                               Dale Shipp
                  fido_261_1466 (at) comcast (dot) net
                              (1:261/1466)


... Shipwrecked on Hesperus in Columbia, Maryland. 00:20:41, 08 Feb 2010
___ Blue Wave/DOS v2.30

--- Maximus/NT 3.01
 * Origin: Owl's Anchor (1:261/1466)