[elmer fudd]

While investment accounts will be a big improvement over SS as it exists now, there will be plenty of trouble down the road regardless. Whether the money comes out of the economy in the form of payroll taxes or by selling off stocks or pocketing dividends, the fact remains that 50 years from now there will be more old folks who aren't producing wealth and less young folks who are.

No matter how you allocate the wealth it boils down to a less productive economy and that spells trouble. The simple fact is that we need more kids. We're making up the deficit right now by bringing in immigrants, but who's to say that those immigrants will feel obligated to support a bunch of elderly Americans without kids of their own when it comes time for us to retire?

[kevkrom]

Whether the money comes out of the economy in the form of payroll taxes or by selling off stocks or pocketing dividends, the fact remains that 50 years from now there will be more old folks who aren't producing wealth and less young folks who are. No matter how you allocate the wealth it boils down to a less productive economy and that spells trouble.

I don't follow your reasoning. The big problem with the current system isn't that older folks aren't producing wealth, it's that younger people are being hindered from accumulating wealth because they're taxed to transfer money to older folks.

Also, money in private investment accounts is productive -- it is used to fund economic growth via infrastructure, and when cashed in and spent, also encourages growth, via sales.

[Xenalyte]

The simple fact is that we need more kids.

And people like me aren't having any, because we can't afford 'em, because we're taxed all to hell.

[mission9]

Even with new immigration, because you fund your account, the other beneficiaries can not get into trouble. You are incentivized to work more and therefore have a better retirement nest egg.