More and more I feel like I need a protective shield of some sort that will create a barrier from the ever increasing encroachment on my personal space. I'm not necessarily talking about all of those pesky flies and mosquitoes that are buzzing around and my efforts at swatting them away are futile. I'm talking about the never ending annoyances that come at me via junk text messages, junk phone calls, junk mail, junk email, and people wanting me to "fund" whatever it is they think they are entitled to. Well, I guess it's the same thing.
There is also the never ending deluge of requests for me to partake in
whatever political/social cause somebody with 1/2 the facts and an
ingrained bias gets worked up about. Congratulations. You have an opinion and I'm NOT your personal on-call army.
Oh, I forgot to mention the time-suck surveys every transaction wants (and then gets demanding with reminders if you don't volunteer your sacred, limited free-time to improve their business bottom line). I also forgot to mention all of the ever increasing complications with EVERYTHING. Want insurance for something? Good luck figuring out policies and comparison shopping between carriers. Want to file for your social security benefits you've worked all your life to build? Good luck with that, too. They've made it so complicated that they are hoping you will choose wrong. Want to die? Well, you can't even do THAT without it being complicated not only for yourself, but for those you leave behind.
Bottom line is that there are too many people making too many problems. Most of the problems are self-created. No wonder the millennials are saying "forget this" and living with their parents. They don't want to own anything - not houses nor cars. Not owning anything means you won't have any liability, responsibility or get sued for anything. You won't have to deal with insurance. Nobody ever sues or tries to collect taxes for people with nothing.
Don't own anything and live in a bubble that lets in only a select few people who have earned your trust. Let a pesky fly in and pretty soon you'll have nothing but maggots.
Showing posts with label social security. Show all posts
Showing posts with label social security. Show all posts
Friday, March 17, 2017
Sunday, April 8, 2012
Pension Reform - Inverted Pyramid
Everybody is griping about how pensions are draining public troughs dry. Everybody is trying to blame the unions. They are partly to blame, but not exclusively. See, unions do NOT set up their benefits unilaterally. It's a joint decision by both labor and management.
The problem is that traditional pension plans (defined benefit plans) promise a predetermined payout upon retirement regardless of stock market performance, number of people participating, etc. The underlying issue and principle is that this type of pension plan depends on a GROWING BASE to fund the retirees or people drawing money out of the plan. The government is not hiring new blood, and the retirees are multiplying like crazy. The base is shrinking. Viola. Inverted pyramid. Top heavy. The system will collapse. It's that simple.
Social security also has the same problem. Back when it was set up, the program incorrectly assumed that the population would always grow and people contributing into the fund would also grow at a rate faster than people collecting out of the fund. Guess what. People are not having 6 kids anymore. Again, we have more people collecting than monies going in, and payment promises have already been made. Top heavy. The program will collapse. It's that simple.
If ever an argument for granting illegal immigrants citizenship it would be to make them all legitimate and pay into the social security system. They are the only base of people multiplying like rabbits. However, contributions would depend on employers honestly paying into the system and we know how much cash slipped under the table rules the business world.
Bottom line: When pension and other programs were set up they assumed a regular pyramid of constant growth and an expanding base. They had no idea or did not even consider a contracting, shrinking base. I thought the esteemed financial wizards were smarter than that. Guess not.
The problem is that traditional pension plans (defined benefit plans) promise a predetermined payout upon retirement regardless of stock market performance, number of people participating, etc. The underlying issue and principle is that this type of pension plan depends on a GROWING BASE to fund the retirees or people drawing money out of the plan. The government is not hiring new blood, and the retirees are multiplying like crazy. The base is shrinking. Viola. Inverted pyramid. Top heavy. The system will collapse. It's that simple.
Social security also has the same problem. Back when it was set up, the program incorrectly assumed that the population would always grow and people contributing into the fund would also grow at a rate faster than people collecting out of the fund. Guess what. People are not having 6 kids anymore. Again, we have more people collecting than monies going in, and payment promises have already been made. Top heavy. The program will collapse. It's that simple.
If ever an argument for granting illegal immigrants citizenship it would be to make them all legitimate and pay into the social security system. They are the only base of people multiplying like rabbits. However, contributions would depend on employers honestly paying into the system and we know how much cash slipped under the table rules the business world.
Bottom line: When pension and other programs were set up they assumed a regular pyramid of constant growth and an expanding base. They had no idea or did not even consider a contracting, shrinking base. I thought the esteemed financial wizards were smarter than that. Guess not.
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