In the not-too-distant future, Cruz envisioned, “we’re going to be able to go to parents and say, ‘Hey, you know that Trump Account your kid has? … Wouldn’t you like to be able to keep a portion of your tax payments that you’re paying already and, instead of sending it to Uncle Sam, wouldn’t you like to have a Trump Account just like your kid does?’'’
“My prediction is, within five years, that is going to have a really compelling constituency,” the Texas Republican added.___
Social security is a bad investment for an individual, but most people are terrible investors if they invest into their future at all. So by giving everyone that baseline, it helps out everyone else, including the rich. And is therefore a fantastic investment for everyone.
Social security is not an investment at all. It’s young people giving money to old people.
For a while, the country didn’t have very many old people, so some of the young-people tax went into the general budget (through purchase of US Treasury bills). Now there’s too many old people, and you can bet that the general budget won’t be giving them anything.
I thought they invest any surplus into government debt securities?
Right: SSA buys a treasury bill, and congress gets to treat that as income for the general budget. For a long time, SSA was the largest holder of US debt. Their surplus has been falling, while the Federal Reserve has bought up tons of Treasuries every time there’s an economic crisis and have now eclipsed SSA. Fed holds about $4.5T, while Japan holds barely $1.2T
Whether you think of these inter-governmental loans as “investments,” is probably a matter of where you fall on pedantry. If I take a loan from my 401k for down payment on a house, I don’t think of that as “investing” my 401k in the house.
Thanks for clarifying!
You misclassify it. The government took the surplus with the promise to pay it back, and now is refusing to do so. They are trying to Default on America.
That’s what he just said.
It’s more like insurance. Some people won’t need it much, others will. It can be beneficial to those.
But the real thing you are ‘buying’ is peace of mind. That is part of the value of it.
You’re also supposed to value the fact that you are contributing to the overall health and prosperity of your fellow Americans.
Lol imagine that.
Well yeah, a stronger society for everyone is better for society as a whole.
In America people view life as a competition, trying to get ahead of the rest. With that mindset it makes sense to not want any programs to help others.
I and many of us in Europe believe more in a stronger society as a whole benefiting everyone. Those who have a good job are lucky. By helping those who don’t have work, can’t work or are sick we make society a better place for everyone to live in. It’s not a surprise we have much less violent crime, more volunteering etc.