4 ms·

If the govt pays pensions (or social security here in the us), they can just print money in the event of an emergency like now. That makes sense. The problem in

If the govt pays pensions (or social security here in the us), they can just print money in the event of an emergency like now. That makes sense. The problem in the us is that we stubbornly refuse to set aside enough money (I mean warring political parties find it advantageous to put off taxing and blaming the other side till later).

Retric 6y ago
US social security is fine as a pension program. It’s disability payments that became a problem. Because high income earners don’t pay for SS, it’s politically very tempting to use that money to pay for vaguely related social programs which then grew over time.
- nickff 6y ago
  Social security is also being used to subsidize government borrowing (by increasing apparent demand for low interest rate bonds), which makes those vaguely related social programs appear cheaper.
  - lotsofpulp 6y ago
    What should be done with social security funds instead? I’ve never heard anyone provide a better option.
    - nickff 6y ago
      Social security could be run more like the large sovereign wealth funds, CalPERS, or as (possibly restricted) private savings accounts. The account statements make Social Security appear to be a private account system, even though it's not true. I doubt any of these alternatives are politically viable, and I am not sure they are all necessarily better, just suggesting that there are alternatives.
      - makomk 6y ago
        Funds like CalPERS typically have a good chunk of their money invested in real estate. They are the landlords this article is calling for us to sacrifice, along with endowments for charities and universities and probably a whole bunch of other pensions (maybe including personal pensions).
        deleted 6y ago
        [deleted]
SkyMarshal 6y ago
I'm not sure if any other governments besides the US can just print their way out of shortfalls. And the US won't be able to forever either, but our politicians will just keep doing it until it's no longer viable.

Retric 6y ago

US social security is fine as a pension program. It’s disability payments that became a problem. Because high income earners don’t pay for SS, it’s politically very tempting to use that money to pay for vaguely related social programs which then grew over time.

nickff 6y ago
Social security is also being used to subsidize government borrowing (by increasing apparent demand for low interest rate bonds), which makes those vaguely related social programs appear cheaper.
- lotsofpulp 6y ago
  What should be done with social security funds instead? I’ve never heard anyone provide a better option.
  - nickff 6y ago
    Social security could be run more like the large sovereign wealth funds, CalPERS, or as (possibly restricted) private savings accounts. The account statements make Social Security appear to be a private account system, even though it's not true. I doubt any of these alternatives are politically viable, and I am not sure they are all necessarily better, just suggesting that there are alternatives.
    - makomk 6y ago
      Funds like CalPERS typically have a good chunk of their money invested in real estate. They are the landlords this article is calling for us to sacrifice, along with endowments for charities and universities and probably a whole bunch of other pensions (maybe including personal pensions).
      - deleted 6y ago
        [deleted]

SkyMarshal 6y ago

I'm not sure if any other governments besides the US can just print their way out of shortfalls. And the US won't be able to forever either, but our politicians will just keep doing it until it's no longer viable.