Some tiny creature, mad with wrath,

Is coming nearer on the path.

--Edward Gorey

Location: Pittsburgh, Pennsylvania, U.S. Outlying Islands

Writer, lawyer, cyclist, rock climber, wanderer of dark residential streets, friend.

Sunday, February 27, 2005

Paul O'Neill on Social Security

A belated discovery: Paul O'Neill proposes a novel approach to funding social security, increasing savings, and investing the trust without full privatization. Check it out. Money quote:

If we decided as a society that we were going to put $2,000 a year into a savings account from the day each child was born until he or she reached age 18 -- and if we assume a 6 percent annual interest rate -- each child would have $65,520 at age 18. (The worst return for a 25-year investor in the stock market from 1929 before the crash to 2004 was an average of 6 percent a year.) With no further contributions, again with a 6 percent interest rate, those savings would grow to $1,013,326 at age 65.

It wouldn't cost as much as you might think. Hat tip, Freedom's Gate, which republishes more or less the whole column.


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