The Republican Conundrum On Social Security – California

Savings Account

As the debate raged over Obamacare, I warned that republicans were painting themselves into a corner.  It has been correctly pointed out that the idea of the individual mandate was an idea first introduced by the right.  After all, by requiring everyone to purchase health insurance, the costs would be spread more equitably – those more likely to require care would pay more, those less so would be less.

While that debate was raging, republicans were pushing the idea of reforming Social Security.  The goal was to institute personal retirement accounts.  In other words, the government would still take 6% of your money, probably 6% of your employers money, and give you the option of investing it as you so desired.

Forced savings.

I didn’t see the difference between forcing someone to purchase health insurance and forcing them to  purchase savings accounts.

To be sure, both are good ideas – VERY good ideas.  But having the government force it on us?  No bueno.

Now see this:

California lawmakers are pushing a controversial, first-in-the-nation plan that would require private-sector employers to remove 3 percent from every worker’s paycheck. The money would go into a new state fund with a guarantee that all withheld funds plus investment gains will be available for distribution at retirement age.

The idea behind the Secure Choice Retirement Savings Program, which got preliminary approval, is for it to be a state-run supplement to Social Security, but only for people who don’t have traditional workplace retirement plans. For an estimated 6 million working Californians, the benefit of a pension or 401(k) is out of reach — so state lawmakers are trying to implement the new mandatory retirement fund for private sector workers.

Boom.

Now, to be fair, there is NO WAY that California doesn’t spend the money before the benefits come due causing a dramatic budget deficit.  Beyond that, however, there is little difference between this plan and the one republicans called for in social security reform.

Maybe the good news is that by being continually to the right of the crazy, the crazy will feel the need to move right.

5 responses to “The Republican Conundrum On Social Security – California

  1. “Secure Choice Retirement Savings Program”

    Another product of the Ironic Government Program Naming Act of 1905.

    Yes, it’s even more flawed that Social Security because the State of California has no authority to print currency.

    • Yes, it’s even more flawed that Social Security because the State of California has no authority to print currency.

      Oh, as long as the money sits in State coffers, it’s as good as gone.

      • Yes, you’d get a better ROI from the guy hustling three card monte’ on the corner.

      • Further, this is an obvious con game aimed at dumb proles: 3% of your paycheck easily fits under even the modest IRA limits — for that you can get an index fund at around 60 basis points. Want to guess what the administrative load would be for CA/SS boondoggle? Guffaw. In the private sector, we’d call this a shark attack, but since Lord God Government can do no wrong, well, it must be awesome!

        • In the private sector, we’d call this a shark attack, but since Lord God Government can do no wrong, well, it must be awesome!

          The sympathetic me wants the government to take the money but set it in legally protected accounts IN THE NAME OF THE citizen.

          The Libertarian in me wants them to leave the f#ckin’ money alone!

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