I think Cynthia Tucker just made a case for privatizing Social Security. I hope someone brought Satan a snow shovel.

Tucker basically says that the City of Atlanta needs to move away from defined benefit pensions to defined contribution pensions. Social Security is like the former, 401k and IRAs are more like the latter. She cites new accounting rules demanding the City put more money in pension plans to cover their future payouts as one of the reasons for Frankin’s budget woes.

Defined Benefit plans are very much like a ponzi scheme in that it assumes future workers will be contributing to meet the payouts to retired workers. It is true that some pension money is already invested in stocks, funds, bonds, and other investment vehicles - which is very different that Social Security where the scum in congress (on both sides of the aisle) spend all the money as it comes in.

H/T: GPPF