Quote:
The thing is "money" (its value) is always subject to where in time you are. This is why "lock-boxes" don't work.
"locking-up" a bunch of money is just like taking it out of circulation and burning it. (deflation) Then, when you "take it back out" it becomes just like printing-up a bunch of money. (inflation)
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Island - I'm not sure that's right.
What actually happens to the supposed SS money? I don't know how it works :o
But I only see three options (and I'm guessing it is #3):
1) Defined fund - invested at acceptable rate of return
2) Defined fund - invested at poor rate of return
3) Not defined - effectively reduces national debt (and thus is equivalent to a defined fund invested at the cost of Govt borrowing with no tax consequences - actually a pretty good outcome).
OK, I went and investigated - looks like it is option (4) - Defined fund, invested mostly in govt securities ----> effectively this is #3 above.
My point is that there is not a time value of money issue. The only rational argument for not taking it now would be to say that you would get more later by allowing people to keep it and tax them more in the future.... not going to happen.
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