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Explain Social Security? I've been trying to figure it out myself for several years now, it has yet to make much sense. Be that as it may, I will attempt to describe it.
Basically, the idea is this. Out of ever pay check, on top of normal taxes, the government takes out SS taxes. This money is then invested by the government, usually into low instrest bonds and such. The overall average rate of return ends up being approx 2%. Then, once you are over the age of 60(?), you start collecting SS. Every month the government sends you your SS check. In theory it's a good idea. The trouble is, in 10-20 years as the 'Baby Boomer' generation begins to retire there is suddenly going to be a HUGE increase in the number of people collecting SS, versus the number of people putting money into it. The trouble is that the 2% returns isn't enough to cover everyone who will have the right to recieve money from SS.
Anyway, I geuss I got a little overboard there. As to the other various things, we do have unenemployment system, we do have a welfare system. Pensions are largely run through individual companies and companies are not required to have them. I suppose it can also be argued that Social Security is a government run pension plan though.
The other retirement options we have are IRA's and 401k plans and the like. I am part of a 401k plan through my employer. Every month a small portion of my salary is taken out, and invested through a firm, in various bonds and mutual funds of my choice. The average rate of return fluctuates wildly with the fluctations of the stock market, but the potential returns are as high as 20%, and rarely go lower than 5%. Plus, all of that money that I invest, is subject to different tax rules than the remainder of my pay, such that usually you pay less taxes on that money. Further still, I am garaunteed to get whatever money I invested back plus returns (unless I suffer losses through my investments). Whereas the with the SS system, there is a good chance that it will collapse before I am able to collect (I'm 21, got 40 years before I can start collecting).
As for public health care insurance, we have the beginnings of such a system in Medicare. Most buisnesses, amd I'm talking about real companies here, not McDonalds, or your corner shoe store, real corporations, have a health insurance plan available through the company. For example, my company offers a plan through "Keystone", which is a health insurance company based in Pennsylvania. I don't remember how much exaclty I pay, I think it's about 80$ USD a month, the total payment required though is about 240$ per month. My employer picks up the rest of the cost.
If you don't have that option, then you can go to those same companies as a private citizen and get insurance, although you have to come up with the entire cost yourself.
Thist of course is where the public health insurance system comes in, or where it is supposed to come in. I'm sure you already undertand how that works in theory.
So, to sum it up, public systems have much varied support or lack thereof in this country. Approx 50% of the people are opposed to public systems and support privatization of some or all of it (myself included). And the other 50% steadfastly support a public system (Al Gore, Bill Clintion).
On a completely separate note, did any of you read that Discover article I posted a link to? It's a VERY interesting article and worth the read if for no other reason than the methematical theory it contains (if you like mathematics that is). Here it is again, please read it guys.
http://www.discover.com/nov_00/gther...atbestman.html
Ian
Basically, the idea is this. Out of ever pay check, on top of normal taxes, the government takes out SS taxes. This money is then invested by the government, usually into low instrest bonds and such. The overall average rate of return ends up being approx 2%. Then, once you are over the age of 60(?), you start collecting SS. Every month the government sends you your SS check. In theory it's a good idea. The trouble is, in 10-20 years as the 'Baby Boomer' generation begins to retire there is suddenly going to be a HUGE increase in the number of people collecting SS, versus the number of people putting money into it. The trouble is that the 2% returns isn't enough to cover everyone who will have the right to recieve money from SS.
Anyway, I geuss I got a little overboard there. As to the other various things, we do have unenemployment system, we do have a welfare system. Pensions are largely run through individual companies and companies are not required to have them. I suppose it can also be argued that Social Security is a government run pension plan though.
The other retirement options we have are IRA's and 401k plans and the like. I am part of a 401k plan through my employer. Every month a small portion of my salary is taken out, and invested through a firm, in various bonds and mutual funds of my choice. The average rate of return fluctuates wildly with the fluctations of the stock market, but the potential returns are as high as 20%, and rarely go lower than 5%. Plus, all of that money that I invest, is subject to different tax rules than the remainder of my pay, such that usually you pay less taxes on that money. Further still, I am garaunteed to get whatever money I invested back plus returns (unless I suffer losses through my investments). Whereas the with the SS system, there is a good chance that it will collapse before I am able to collect (I'm 21, got 40 years before I can start collecting).
As for public health care insurance, we have the beginnings of such a system in Medicare. Most buisnesses, amd I'm talking about real companies here, not McDonalds, or your corner shoe store, real corporations, have a health insurance plan available through the company. For example, my company offers a plan through "Keystone", which is a health insurance company based in Pennsylvania. I don't remember how much exaclty I pay, I think it's about 80$ USD a month, the total payment required though is about 240$ per month. My employer picks up the rest of the cost.
If you don't have that option, then you can go to those same companies as a private citizen and get insurance, although you have to come up with the entire cost yourself.
Thist of course is where the public health insurance system comes in, or where it is supposed to come in. I'm sure you already undertand how that works in theory.
So, to sum it up, public systems have much varied support or lack thereof in this country. Approx 50% of the people are opposed to public systems and support privatization of some or all of it (myself included). And the other 50% steadfastly support a public system (Al Gore, Bill Clintion).
On a completely separate note, did any of you read that Discover article I posted a link to? It's a VERY interesting article and worth the read if for no other reason than the methematical theory it contains (if you like mathematics that is). Here it is again, please read it guys.
http://www.discover.com/nov_00/gther...atbestman.html
Ian
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