Social Security hurts the poor. We can, instead, have a nation of millionaires. The first case study focused on a fictitious individual who worked his entire life at minimum wage.
Yes, the individual received a wage increase ONLY when Congress mandated a minimum wage increase. That individual would have accumulated $374,608 in retirement funds, and $79,860 with which to purchase a catastrophic health care plan in the private market. (well….if the private market isn’t destroyed by politicians….)
Combined, that is $454, 468. If our fictitious individual married someone who also worked their entire career for minimum wage, their household would have $908,936 in wealth on their day of retirement.
I’d call that nearly a million dollars!!!
The retirement portion $374,608 provides $1,248.69 per month until the individual is ninety-one years-old. Or $2,497.38 per month for the household. That compares with the Social Security benefit of $1,056. 50 for each individual, $2,113.00 for the household.
Between retirement age and age 86, the private solution earns the household $92,251.20 MORE than the Social Security “benefit”. Being as the privatized monthly amount covers the retiree until age 91, an inheritance would be available to their heirs, if they pass away when Social Security believes they will.
And please do not forget that the household also has a combined $149,720 on the day of their retirement with which they can purchase a catastrophic healthcare plan.
Not bad for a couple who never earned more than minimum wage!!
Is this perfect?
No.
Are
-
- ownership,
- inheritability,
- a higher monthly retirement check that lasts until your 91,
- a smaller government bureaucracy,
- a pool of capital that will grow by a trillion dollars a year for a generation,
- low interest rates because we are awash in capital,
- and a nation of MILLIONAIRES
worth a try?
I think so.
And The Founders Weep.
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