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Social security provides money, which is about as efficient as it gets. Are you positing that private pension benefits are somehow spent more efficiently? As f
by adamc 17y ago
Social security provides money, which is about as efficient as it gets. Are you positing that private pension benefits are somehow spent more efficiently?
As far as whether it helps people, it unquestionably does. Maybe it hurts other people (those who pay taxes), but that income transfer would not likely happen under private plans. So it is not an apples-to-apples comparison.
- Nwallins 17y agoHow is the revenue from social security different from that of other federal taxes (esp. income)?
- xenophanes 17y agoYes, private pensions have different rules and regulations about when to put money in, take it out, etc. For one thing, social security forces you to contribute. If you would rather spend your money on something else (in general, or just this month), you can't. Sometimes that hurts people who are trying to make rent. Sometimes it's inefficient b/c they could have used the same money for something better. Private pensions, if they get nothing else right, at least are voluntary.
- anamax 17y ago> As far as whether it helps people, it unquestionably does. Maybe it hurts other people (those who pay taxes), but that income transfer would not likely happen under private plans. SS is a big income transfer from blacks and hispanics because they don't live long enough to collect much. It's a modest income transfer to women and the poor.