Post AZ2hoaJViHpoxcq4Aa by copperred@mastodon.sdf.org
 (DIR) More posts by copperred@mastodon.sdf.org
 (DIR) Post #AZ2hoaJViHpoxcq4Aa by copperred@mastodon.sdf.org
       2023-08-24T03:02:23Z
       
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       Last night I was up thinking about how people on the left in America get about investment of social security or pensions in something that actually gains value, like real estate, stocks, bonds, etc when Sweden's pensions have been invested in the same for seventy plus years now. It's going mostly fine, but the contribution rate is going to have to go up.
       
 (DIR) Post #AZ2hob4eszY5Jqtieu by publius@mastodon.sdf.org
       2023-08-24T03:06:38Z
       
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       @copperred The basic problem is that the Social Security Act was passed at a time when distrust of businesses was at an all-time high. So instead of investing in gilt-edge commercial securities, the funds were placed in Government bonds, because it seemed likely the Government wouldn't disappear the next day (and if it did, the Social Security system wouldn't survive anyway).A secondary problem is that the US economy is so huge that there's a serious problem finding things to invest in.
       
 (DIR) Post #AZ2jlZzidxYp0hHBrM by copperred@mastodon.sdf.org
       2023-08-24T03:28:31Z
       
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       @publius They're not even in 30 year T bonds. They're in Notes and not even TIPS. It's so damn typical of the US to not make any changes, because of some kind of fear. In the 90-2000s they argued (perhaps correctly but still) that it was going to be a handout to T Rowe Price. They could have split it out or added additional contributions and used the purchasing power of govt.I don't want them in regular TSP but a separate similar system? Sure.Altho it all goes into the general fund so...
       
 (DIR) Post #AZ2kujnBgV4NxTLTrk by publius@mastodon.sdf.org
       2023-08-24T03:41:21Z
       
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       @copperred My opinion continues to be that, with an appropriate reform in tax policy so that the US Government runs even a small surplus, the demand for US Federal debt can be kept strong. Then the Social Security Trust Fund can be diversified without the danger of sinking the dollar.As long as it's invested into domestic projects we really need, such as railway electrification and nuclear power plants, the increased economic output will keep everyone afloat.