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Either way everyone is in the exact same boat, except in boat b, Americans pay the opportunity cost of investing at 2%. In boat a the Chinese do.
by byrneseyeview 18y ago
Either way everyone is in the exact same boat, except in boat b, Americans pay the opportunity cost of investing at 2%. In boat a the Chinese do.
- mattmaroon 18y agoWell, I certainly wasn't claiming it was a top-notch investment strategy. But for Social Security to work, it has to have periods where it's overfunded, so it can pay out when it's underfunded (and the problem is that it didn't) and that surplus has to go somewhere. I can't think of anything better for it than what they do, which is essentially buy government bonds. It's the only 100% guaranteed investment, since the government can print money to replace it. Just be glad they didn't buy CDOs with it.