And as this chart from Mike’s paper illustrates, American politicians have dug a huge hole. Relying on the empty promises of Washington politicians will be far more risky than personal retirement accounts.
The chart shows big funding shortfalls, particularly once the baby boomers have retired. Most people, though, aren’t familiar with concepts such as “percent of taxable payroll.”
So let’s make it simple. If we look at all of the future deficits, adjust them for inflation so we can make an apples-to-apples comparison, and then add them up, the Social Security shortfall is close to $30 trillion.
We know that personal accounts work. Nations such as Australia, Chile, and Sweden have reaped big benefits by making the shift.
I’m not surprised that left-wing journalists want to trap American workers in a bad system. But I am disappointed that a lot of Republican politicians feel the same way.