What's happened to all the manufacturing jobs?

In the worst possible case for a 45 year period if money were invested in the stock market in 1887 and then cashed out in 1932 the average annual return would be 4.3%. The average of all 45 year periods is ~ 7%. In the long run the stock market out performs all other forms of investment.

Source - "In Our Hands - A Plan to Replace the Welfare State" - Charles Murray - AEI - 2006 - pages 26 - 30. The work of economist Jeremy Siegel is the basis for this.

 

Problem is people don't retire or need money only in 45 year increments!

People need money every single day...so when the stock market is down and it's a bad time to cash in yet people need money who is going to help?

 

Social security is ~ 45 year commitment.

 

Very few people pay into FICA for 45 years.

How can FICA monies be invested in the stock market? First, there is no money to invest! FICA income goes first to pay recipients and second to dump cash in the general fund. Even with the general fund taking all excess FICA the government still creates $500+ billion deficits every year...so deficits will be even larger without FICA cash. And even if you could invest in the stock market, where is it invested, who is it invested with, what would trillion$ more cash in the stock market do to the stock market? What happens when there are defaults/failures? I simply don't see any practical way privatization can happen...

 

But people typically retire ~ 45 years after entiring the work force. There is no money because the gov removed the money and left IOU's in the trust fund lock box.

If the social security system was privatized there would be much better benefits to retirees. The best examples are Chile and the 3 counties in Texas in which public employees chose a private option instead of going into the FICA system.

 

OMG yes!!! the average American would retire with a $1.4 million estate rather than the dog food money from SS if they live long enough to collect a penny. Republican capitalism made us all rich but liberals stole the money!

 

I'm an investor so I certainly understand the concept of winning and losing in the stock market!

I fully know if everything goes 100% perfect, over your 45 years, that there 'should' be more money available to recipients.

But you didn't answer any of my questions about how it could ever be implemented?

IMO there is no way the US government is going to allow trillion$ in cash to be dumped into the stock market...

 

Private accounts. It's working very well for Chile and three counties in TX (Galveston, Matagorda and Brazoria Counties). The TX account holders have ~ 5% return, have a life insurance benefit, and are able to leave their accounts to their beneficiaries if the pass prematurely.

https://www.forbes.com/sites/merril...security-accounts-and-prospered/#7bac94963283

 

not a problem there are stock bond commodity derivative money markets all over the world that increasingly can absorb the money

 

http://www.latimes.com/business/hiltzik/la-fi-hiltzik-chile-social-security-20160812-snap-story.html

https://protectpensions.org/2016/08/23/chile-failure-privatized-pension-system/

http://www.nytimes.com/2005/01/27/b...-retirees-find-shortfall-in-private-plan.html


The success of a private account requires constant investment over your 45 years; those who don't work, those who cannot work, those with incomes in the lower to middle ranges, will not receive the huge gains you talk about. This obviously means a government is forced to continue parallel programs.

You're also talking about trillion$ being invested and once again I ask you how do you dump trillion$ into the US stock market? How will government be forced to supplement those with private accounts that simply don't provide enough for retirement? And how do you transition to private accounts when you are required to continue service to millions currently on SS?

IMO too many focus on the 'assumed' numbers of 5% or 6% or higher but neglect that during your 45 year period to achieve the final results, along the way, everything needs to be perfect...perfect investment, perfect fund management, perfect administration, perfect market values, etc. etc.

 

I agree there are many options but now you're talking about investing outside of the USA and what guarantees or oversight will exist?

 

USA is increasingly less of world markets so does not have to be in US stock, can be in world wide stocks bonds commodities derivetives money markets etc

- - - Updated - - -

same as here and same balanced risk profile as here.

 

Again, I understand there are options but I can't imagine Americans placing their retirement money all around the world with zero guarantees?

Why not allow world money to buy SS trust bonds?

 

most think there are no guarantees with SS now payable from a govt $20T in debt and heading to $80 trillion in debt

 

So what? Forget the debt. Nobody is coming to the White House to possess it!

Rather, worry about the fact that Donald Dork is increasing DoD expenditures that will do absolutely nothing except continue the high-salaries at the Pentagon.

Moreover, only God knows where he is going to find the money to do the Stimulus Spending Obama wanted to do WAY BACK IN 2010! After the Replicants had refused any Stimulus Spending to put people back to work (which worked when Obama employed it in 2009/10 (the bill was called ARRA), they are now willing to spend-money?

Well, whaddaya know? What took them so long!

We had waited 7 long years just to get back to where we were in 2008 in unemployment! Why? Because they were playing games with unemployment in order to recuperate the White House, which did not work but caused a lot of anguish.

In 2000, when Billy-boy Clinton handed the White House over to Dubya, the unemployment rate was 4%. See its historical evolution since:


We shall see if and how long it takes Donald Dork to get us back to 4%.

My Point: It is not Mission Impossible but it IS Mission Improbable. The world has changed drastically since the turn of the century. And the OECD* is predicting this:

My guess is that Donald Dork is counting on Wishful Thinking ...

*The OECD chief economist is an American.

 

except....... develop ABS systems to shoot down enemy missiles from North Korea Russia Iran that could kill hundreds of million of Americans.

 

Pentagon staff get pennies to the dollars that arms makers, banksters, and other corporate filth get from America killing people and destroying crucial infrastructure in other countries.

 

lib Marxist BS ranting or can you present your best example??

 

Iraq? Syria? Afghanistan? Vietnam? Libya? How many examples are needed?

 

so the silly liberal thinks we should have befriended Hitler Stalin Mao and Saddam??????

 

The USA DID befriend Saddam, uninformed conservative, just as it befriended Daesh (ISIS) when Daesh planned to take down Assad. Saddam was a creation of the USA, which aimed him at Iran and pulled the trigger.

 

??? I recall seeing him hanging???? Dare to google it?????

 

'Most' DO NOT think as you state here?

If you don't believe the US government will take care of SS for it's 62 million recipients then you have zero faith in the USA. In this case you should consider moving...

 

you have to use common sense. If you made a loan to a person $20T in debt and expected to be paid back in real money you would be considered stupid or liberal.

 

What happened to the ice man?!
What happened to the milk man?!
What happened to the blacksmith?!
What happened to the tanner?!
What happened to all the agriculture jobs?!

All of these questions are just as valid, and non-stupid, as asking what happened t0 all the manufacturing jobs.

We need to get people out of their cubicles in healthcare, finance, business, and education, and back into the fields with mattocks, shovels and bloody knuckles!!!!!!!!!!!!