The Babe Theory Of Political Movements.
Mar. 21, 2005 11:50 AM
Iran's Sham Election In Houston.
June 20, 2005 5:36 AM
Yes, Kanye, Bush Does Care.
Oct. 31, 2005 12:41 AM
Health Care vs. Wealth Care.
Nov. 23, 2005 3:28 PM
Americans Voting With Their Feet.
Nov. 30, 2005 1:33 PM
Idea Majorities Matter.
May 12, 2006 6:15 PM
Twilight Zone Economics.
Oct. 17, 2006 12:30 AM
The "Shrinking" Middle Class.
Dec. 13, 2006 1:01 PM
From Ashes, GOP Opportunities.
Dec. 18, 2006 6:37 PM
Battle Between Entitlements & Pork.
Dec. 21, 2006 12:31 PM
Let Economic Freedom Reign.
Dec. 22, 2006 10:22 PM
Biggest Health Care Moment In Decades.
July 25, 2007 4:32 PM
Unions Antithetical to Liberty.
May 28, 2008 11:12 PM
Right To Work States Rock.
June 9, 2008 12:25 PM
Social Security Reform Thursday.
March 13, 2008
Caption Contest: Enter Today!
Due: July 29, 2008
The Carnival Of Classiness.
Mar. 14, 2006
Quotational Therapy: Obama.
Apr. 4, 2008
Mainstream Melee: Wolfowitz.
May 19, 2007
Pundit Roundtable: Leaks.
July 9, 2006
A WILLisms.com(ic), by Ken McCracken
July 14, 2006
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Reform Thursday: Week Fourteen.
Thursdays are good days for reform, because they fall between Wednesdays and Fridays.
That's why WILLisms.com will display a chart or graph, every Thursday, pertinent to Social Security reform. The graphics are mostly self-explanatory, but we include commentary on some of them where and when necessary.
One thing to note is how each fund, over the past decade, has delivered positive and significant returns, even through slumps in the market. In each of these models, we calculated what would have happened to $10,000 in each fund from 1995 to the end of 2004:
And a look at the current incarnation of the Thrift Savings Plan's C Fund, since its inception (.pdf):
And a look at the current incarnation of the Thrift Savings Plan's F Fund, since its inception (.pdf):
And a look at the current incarnation of the Thrift Savings Plan's G Fund, since its inception (.pdf):
And a look at the current incarnation of the Thrift Savings Plan's I Fund, since its inception (.pdf):
And a look at the current incarnation of the Thrift Savings Plan's S Fund, since its inception (.pdf):
Social Security Reform is about younger workers using compound interest to get a better deal, which would smoothly and easily offset the President's proposed progressive indexing. All progressive indexing does is say to lower income workers that they will not see any change in the growth of their benefits; benefits will still be pegged to wage growth. In other words, nothing changes for lower income workers, except the possibility of earning more through personal accounts. Lower income workers still pay into the system, so the claim that President Bush wants to turn Social Security into "welfare program" is just not the case. Quite the opposite, in fact.
Under progressive indexing, what changes is that middle and upper income workers will see the growth of their benefits pegged to inflation rather than wages. To make up for (and then some) that gap in benefit increases, personal accounts will allow any worker who chooses to benefit from investing a portion of his or her payroll taxes into a personal savings account resembling those found in the Thrift Savings Plan (TSP).
These funds, incidentally, have average fees of less than sixty cents per thousand dollars (less than 6 basis points). Social Security's Actuaries estimate personal accounts would have fees of about 30 basis points, or three dollars per thousand dollars, but, as Don Luskin points out, economies of scale might be able to keep those fees even lower.
It's a win-win, people.
Let's please get over this "benefit cuts for the middle class under the President's plan" business.
Previous Reform Thursday graphics can be seen here:
Posted by Will Franklin · 5 May 2005 05:03 PM
Posted by: Ralph at May 5, 2005 06:20 PM
Way to go WILLisms.com You are so great!...Maybe this will open some eyes! Thank you WILLisms.com so much for Showing the facts of why these liberal Senators don't find it one of their "top ten" priorities!
Posted by: Zsa Zsa at May 5, 2005 07:02 PM
Brilliant and dynamic is all I can say about reform day at WILLisms.com
Posted by: Zsa Zsa at May 5, 2005 07:23 PM
I am PRO CHOICE!...You would think for once the Democrats and Republicans could agree on something! This truly is an issue that should be a CHOICE! ... Social Security Reform is not exactly a choice. Social Security Reform sooner or later is a MUST!...
Posted by: Zsa Zsa at May 6, 2005 06:55 AM
Good work, as always!
Using the Investing: Rate of Return tool at my blog, I determined that the various TSP funds had the following raw (not adjusted for inflation) rates of return for the time invested:
Fund C: 10.46%
I may have to figure out what the inflation-adjusted rates of return are and post a companion piece to your post later today....
Posted by: Ironman at May 6, 2005 08:44 AM
Will... is Zsa Zsa your mom, by chance?
I have a hunch...
Posted by: Hoodlumman at May 6, 2005 08:50 AM
Perhaps IF SEN. HARRY REID, REP. LORETTA SANCHEZ, FORMER FIRST LADY AND NOW SEN. HILLARY CLINTON,AND HOUSE MINORITY LEADER NANCY PELOSI were forced to pay into the Social Security plan themselves it would seem like more of a" crisis," not such a "silly Social Security thing" Become one Hillary's "top five things to think about" and Nancy Pelosi might think it more necessary to order House Democrats to propose instead of oppose Social Security reform!... I think they should opt out of their cushy Federal retirement program and pay into Social Security like the rest of the Americans if they don't think of it as important!
Posted by: Zsa Zsa at May 6, 2005 08:56 AM
When the President spoke at an automobile plant in Mississippi recently, he said that federal employees and members of Congress currently have the option of investing some of their payroll taxes into the Thrift Savings Plan, according to the local newspaper.
Is that how the Thrift Savings Plan works?
Posted by: Steve at May 6, 2005 01:04 PM
Your local newspaper may be mistaken, although it's tough to tell since they did not quote what the President said in that regard. For the record, government employees may invest up to 14% of their basic pay (excluding bonuses, overtime, etc.) in the TSP, but they also pay full Social Security taxes. For more information, see the TSP's web site.
And, as I threatened to do before, here is the companion rate of return post at Political Calculations.
Posted by: Ironman at May 6, 2005 02:43 PM