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Except that $20K today may not have the same value as $20K in 30 years.
by malka 13y ago
Except that $20K today may not have the same value as $20K in 30 years.
- erichocean 13y agoSo, lobby the government to enact a law that adds X newly-printed dollars to each pension each year based on the government's own inflation calculation. Then the value of the pension each year would stay the same, and even better, the pension would not need to invest in risky assets. (If you want, mandate that the pension invest in T-bills, and then cover the difference.) This kind of approach involves no new taxes, and there's absolutely no reason to "borrow" the money from the Federal Reserve either, or future generations, or the general public via T-bills. Literally, you just need to change the amount of money each pension "has" on the books. The banks are regulated, and they'd be forced to except the updated balances by law.