Tony_FLADEM
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Wed Feb-09-05 05:43 PM
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Question about Social Security |
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The 3% return people get on Social Security is after inflation because it is indexed, right?
These private accounts that Bush wants to inact do not factor in inflation, right?
So aren't the supporters of privitization engaging in a dishonest debate?
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papau
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Wed Feb-09-05 05:57 PM
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BillZBubb
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Wed Feb-09-05 05:58 PM
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2. You are basically correct. |
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The Social Security system is indexed for inflation, so the returns are real (in economist's) terms. About 3% after inflation is correct.
The private accounts don't have any known return, real or otherwise. They are merely being speculated about based on "market average" returns. Those returns are usually not adjusted for inflation (or transaction costs, maintenance fees, or survivor bias). The claims also don't take into account that most managed portfolios don't even meet the market averages. So, most people will do worse than the averages, and many of those MUCH worse.
And yes the debate is totally dishonest. But, what do you expect from Repugs?
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Sat May 04th 2024, 08:22 AM
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