<p>I am guessing K-waves refers to the Kondratieff theory. Lots of economists have criticized that theory. Do you think it is valid?</p>
<p>“Old people are getting much more money from social security than they ever put in to the social security system”</p>
<p>I would hope so…</p>
<p>You don’t like to make more money than you put into something?</p>
<p>You don’t believe in compounding interest?</p>
<p>I thought one of the issues with SS is that some people are getting less than they put into the system and that this trend is going to continue…</p>
<p>SS can’t win…pays out too much…pays out too little…</p>
<p>One thing SS did do was lessen poverty…</p>
<p>And SS is not really a budget issue…</p>
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<p>K-Waves are an observation. One of the theories to explain it is intergenerational conflict in terms of the young vs the old. It’s not too hard to find examples of intergeneration frustration.</p>
<p>I think that it’s a gross but useful tool on long-scale investing.</p>
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<p>When you are getting 8, 9, 10 times or more than you put into the system, it is not a return on investment - it is better than any hedge fund could produce and it is generational theft. The young people who are having to pay that excess return are not too pleased to see their standard of living decrease at the expense of older people who should know better.</p>
<p>Are a few people getting 8, 9 or 10 times more…and how many years have these people put money into the system…</p>
<p>6% interest compounding over 36 years…you make 8 times your money…</p>
<p>IMHO there are 2 inherent problems in SS:</p>
<p>(1) SS was never meant to be the SOLE income retirement stream. It was meant to be suplemental to pensions & savings.<br>
(2) SS is unfunded. Huge mistake from day 1. Probably due to founders not thinking that salaries would increase at the rate they have and people would live so long. </p>
<p>I don’t have answers and don’t see any quick fixes (especially to #2). Financial literacy and education could make a dent over time into #1. </p>
<p>Those of us in our late 40s/early 50s will probably not recoup the funds we have contributed to SS.</p>
<p>I am sure some people won’t get there money back from SS…</p>
<p>SS is funded by the young paying for the old…but then the young gets old…</p>
<p>If people are living longer…if all things were kept constant …people would make even more from SS…which does put pressure on the young.</p>
<p>I think the SS argument is poltical…</p>
<p>SS can be tweaked in so many ways to make it more viable.</p>
<p>When I see so many people relying on SS these days…older people would be screwed without it…</p>
<p>It is easy to complain about SS when the person who does the complaining doesn’t need it…</p>