Quote:
Originally Posted by Ghostwriter
2. Tough stuff if most people suck at money management. Put the money in the least aggressive fund and go from there. There is such a thing as risk versus reward and if someone does not know how to invest they can put it into MM funds or even CD's backed by the government (similar to FDIC). I really don't care. People must learn to take care of themselves.
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I think this is where we're having the disconnect - I agree with this from a conceptual basis, and personal responsibility should really be emphasized as often as possible in government/citizen interactions.
However, the reality is that allowing dumb people to do dumb things with dumb money they've poured into a dumb system will likely cause a massive increase in the need for social services, welfare, government-sponsored senior housing, etc.
There's the distinct possibility that privatization creates more new expenses for the average taxpayer than they would gain through average investment. What do you do with those who lose their nut? What do you do in crappy markets?
The goal of any government interaction with the market should be to ebb swings, right? Doesn't privatization distinctly and strongly
emphasize market swings by making the highs higher and the lows even lower (more money into social programs etc.)?
I don't want to make $40,000 in the market, but lose $1,200 in taxes every year for 50 years. This could well be a hidden net negative.
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