Social Security vs. Private Retirement Accounts

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Prof. Antony Davies analyzes Social Security in the United States through the lens of a typical 22 year old American. Assuming that Social Security is completely solvent, the expected return on investment (ROI) of Social Security is far lower than the expected ROI of a private account. Further, if an individual could hypothetically opt out of Social Security payments and invest the funds entirely in Treasury Bills, the Treasury bills would even yield a greater ROI.

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Education

Tags:

• economics
• policy
• economic
• social security
• retirement
• U.S.
• investment
• savings
• entitlements
• reform
• learn liberty
• free market
• deficit
• government
• spending
• public policy
• politics
• Learn Liberty
• liberty
• video
• ROI
• return on investment
• Antony Davies
• Antony
• Davies
• freedom

[FletchforFreedom]

@nunayafb I'm not responsible for your ignorance, poor black men start work sooner and live shorter lives. The research is easily located. If you can't grasp that taxation is, by definition, the forcible taking of assets, you need to pull your head out of ... a dark place. And there is NO security in SS sicne the system is bankrupt, few people get even what they pay in, the return even for those that do is terrible and Congress frequently changes the rules.

Grow up.

[FletchforFreedom]

@egcroanThe only one rewriting history is you. Again, it isn't that AN economist argues FDR's programs didn't work. Virtually ALL economists acknowledge they didn;t work. Even Keynes himself was critical of FDR. The best example is that one can compare the initially much deeper recession in 1920 which was quickly resolved in the absence of a New Deal.

[KittenKoder]

I wish I had the internet when I was younger ... could have saved me a ton of headaches.

[sanitydotorg]

@Norie92

Um what? I was talking about his claim that people on S.S. are drawing $80K a year. Do you know anyone drawing $25K a year on S.S.? No. 4500 a year is more like it.

[Norie92]

@sanitydotorg He said that number is not adjusted for inflation. He said with inflation it'd be around $25k.

[killlagger468]

OMG THIS VIDEO IS AWEEESSSOOMMMMMEEEE!!!!

[wizardry06acer]

@sanitydotorg: If you assume an inflation rate of 3.01% for the next 45 years (22 to 67) and apply that to the maximum monthly social security payment and multiply it by 12 months per year (see the url ssa-custhelp.ssa.gov/app/answe­rs/detail/a_id/5/~/maximum-soc­ial-security-retirement-benefi­t) -- you get actually $107,837. But that's "2056 dollars," not 2011 dollars.

[sanitydotorg]

WTF? Pull out 1.2 million? I think the second half of his graph is a bit skewed to say the least. I've never heard of any one on SS make $80K a year

[toshzpelta]

@egcroan Oh I've seen you before too... You're a local youtube troll who goes on rants and calls everyone Paul Ryan supporters and listeners of Neo-Con radio shows... typical troll, you got me again!

[toshzpelta]

@egcroan I don't think you're actually replying to me b/c what you just said was utter dribble. I could spend an hour replying to you point-by-point proving you wrong, so instead I'll just poke fun at you and say that you're probably just too damn old to even consider a different point of view or to go read a book by someone who you disagree with.

[FletchforFreedom]

@egcroan That you ahve no clue how insurance companies work is hardly surprising. In fact, insurance companies of all types tyoically pay out MORE in benefits than they take in in premiums. they make their money investing funds between the time premiums are paid and the time payouts are made. Anyone arguing that profits should be "shred" by anyone simply proves that the only thing between their ears is ... well.. dribble.