O'Neill's Social Security plan would ensure benefits in future

Posted: Thursday, March 03, 2005

Social Security is one of many forms providing financial help in old age. Contributing to it is obligatory for most everyone. It is an implement introduced by the Roosevelt administration in the 1930s. It is not intended to be welfare, rather an aid to those who have little financial resources when they become old. My dad paid in 30 years and got back $250 a month. Yep. That'll getcha two weeks of groceries. It is not a retirement check.

There is one way to fix this outdated system. Get rid of it! Mr. Paul O'Neill, the former Secretary of the Treasury, has offered a plan that would replace Social Security and Medicare. The Fed would stake each newborn baby $2,000 a year for 18 years, after which it would grow until the individual is retired, giving the person a cool $1 million (figuring on compounding reinvested profits in a conservative index of stocks and bonds). What a concept, making lots of money for doing nothing and paying nothing. And all this for being born in the USA. It could be a great way to phase out Social Security, which it would do eventually. This idea has support of both houses of Congress for good reason. It is cost-effective in the long run and everyone ends up being millionaires — well, our kids will. Too bad kids can't vote — yet.

Robin Craviotto, Palmer

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