US Govt dips into social security?

[Pete]

I heard something on the radio on the weekend along the lines that the US government had dipped into social security funds and that was a major reason that there was discussion on changing access to funds to allow individuals direct control of funds. The funds are OK til 2042 or so but then there will be problems.

Does that sound correct?

Is our system different? Or could the Australian government access superannuation funds?

 

[quiggles]

Don't know about the US. The government can't directly dip into super funds here as they are held in trusts. However, they can always stand at the entrance and collect a 15% tax and at the exit and do the same. Oh, wait on, they already do.....

Changing the tax rates effectively allows the Government to dip in.

In fact, the crisis should come earlier as those who started super too late for compound interest to do its magic enter an overburdened welfare system. By 2042, everyone will have been on some form of super all their working lives.

 

[jrc]

If you're interested in the Us Social security debate, Paul Krugman, an economics columnist for NY Times has a number of columns on the issue which can be accessed on his unofficial web page, just google Paul Krugman and you'll find the link quickly