Um, actually Pang you have it wrong. Social Security is not like this, it is not a fund that you pay into and the government manages for you. It is much more like a ponzi scheme.
Everyone paying social security now is, by design of the system, paying for the people who are currently retired. It all goes to current retirees. From the beginning of the program there were more people paying in than were drawing out so the government used the extra as a great source of extra cash. And of course they periodically purchased extra votes by increasing the benefits. The excess was 'invested' in as a line entry in the federal books. Not even savings bonds issued. Some years back that flipped, and now more is paid out than taken in. So now Social Security is a drain on the budget instead of a bonus, and we have to borrow (mostly from the Chinese) as that budget line is drawn down. That is what they mean by 'Social Security is going broke'.
The only way that Social Security is different from welfare is that there is a dedicated tax that helps to pay for Social Security, and welfare is taken directly from the general fund. Both are 'entitlements', ie: that benefits paid are not related to income taken in.
All that sidebar done with, Suicidal you have a tremendously good and tremendously funny observation. :)
Originally
posted by
Pang:
Social Security is something that you pay into so it's waiting for you in the future. What is taken off your pay cheque is supposed to be invested on your half by the government and be ready to be paid back to you when you retire (if you get there). It's the safety net that protects your retirement, assuming you worked hard for your life and paid into it.