When I'm Sixty-Four

Let's think about Social Security. I know, I know, just like dirty diapers or flesh eating bacteria, Social Security is one of those things that people don't like to think about. But, as you also may know, the system is going broke and it's worth at least one blog entry every now and then. In fact on the news they were saying it will be insolvent by the year 2042.

So let's think about it, ok?

First, before I begin, I would like to express my heartfelt thanks to all the twenty-somethings out there who think they are so smart and know it all and who will be supporting me when it's time for me to drop out of the race and go out to pasture. According to the news report, when that happens there will be two of you for every one of me, which says to me that maybe if you were a little smarter you would have been born 20 years earlier.

But that's you're problem not mine.

Before you despair, however, you should know that there is a plan out there called "privatization" that is going to save Social Security. As I understand it this is a Republican plan which means absolutely nothing nowdays since I can't hardly figure what's a Republican or what's a Democrat anymore. I mean the Republicans say they're for a leaner and meaner government but then as soon as they get elected they act like a teenager with a credit card. Buy this, buy that, ooh buy this and that - I read a prediction somewhere that by the time Bush finishes his second term he will have increased the size of government more than was done by the three previous presidents combined. That's a strange kind of downsizing, if you ask me. I mean, isn't it supposed to work the other way? Aren't you supposed to downsize to improve the balance sheet and work your way out of the hole, not load up with debt and sink even deeper.

On the other side you have Kerry who they are calling a Democrat. Now, if I remember right the Democrats were always the ones that said you should use government to improve people's lives, and yet here's Kerry talking about how America has to save and conserve and be more fiscally responsible. That's a democrat?

It doesn't really matter because Kerry will never be elected president anyways. That's my not so bold prediction at least and really it's kind of a no-brainer. America is never going to elect some miser who's always telling them to save and be responsible - that's what parents are for. America wants a president who gives them money and tells them to spend and have a good time and party like drunken sailors. Every time I see old grim-faced John on the tube I can't help but think his whole candidacy is hopeless.

Which brings me to Social Security and privatization - which is going to at least be discussed at some point in the second term. The idea, as you probably know, is to allow us working folk to withhold 25% of our FICA contribution (tax) and invest it independently for our own retirement in Private Investment Accounts. That will save the Social Security system because the higher returns we will be earning in the stock and bond markets will allow the government to reduce the size of the benefit payments and keep the whole thing solvent. That's the theory, anyways.

The reality, as I see it, will be something different. How is it, I ask, that millions and millions of people who can't even balance their own checkbooks are suddenly going to become financial wizards after this privatization thing becomes law? The answer, of course, is that they will not become financial wizards at all. Instead, they will turn over the management of their PIA's (as they're called) to private Financial Services companies who will gladly handle their money for them. For a price.

Well, suprise, suprise, suprise.

Guess that means privatization isn't just about savings the system but it's also about transfering millions or maybe billions of dollars from Social Security to the brokers and managers and all the other commission loving wheeler-dealers on Wall Street who are always willing to lend a helping hand to trusting souls with wads of dough in their pockets. Those politicians, I tell you, they sure know how to look after their special interests, er consituencies.

This will be, I think, the next big gold rush, and if this law passes it would probably be a good idea to have a brokerage stock or two in your portfolio. Personally, I can't wait till the spams start showing up in my mailbox offering me 100% returns -GUARANTEED!- on my PIA. I tell you, I can see it coming, and it's going wind up being one of the great scandals of the 20's or 30's or whenever it is that the whole thing busts wide open.

That's why it would probably be a good idea to have some kind of watchdog agency to oversee and approve the investments that people can make with the money. ETF's and other index funds would certainly be appropriate, as well as no-load low-expense type mutual funds. I mean a lot of investements would be appropriate, but there should be some way to keep out the "double your money in just seven days" schemes, that is if Social Security is going to continue to be thought of as a safety net and not as a roll of the dice.

The Golden Age of Radio

I said I was going to take Classical Voices off the air and I will, but after putting so much effort into it I just can't shut it down without letting it run at least a little longer. Come Sunday it will have been up a week and I think that will be a good time for the station to take it's final bow. Like I said I've been suprised at how successful it's been. I checked the logs and it looks like there have been quite a few people who've stopped in for a visit. Of course, some just stay for a few seconds (the internet equivalent of Auto Seek I suppose), others for a song or two, but most tune in for around 1 to 2 hours at a time and and some for 6,7, and even 8 hours or more. Wow, I wasn't expecting that. I get a lot of one time visitors but also 5 or 6 who seem to come back from time to time. Last night I even found a message in the log saying someone tried to connect but couldn't because the server was full. How about that! Classical Voices was so popular that you couldn't get in if you wanted to.

Oh well, come Sunday it will be history. It was fun being the Rupert Murdoch of my own little media empire for a while, but all good things must come to an end.