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20160414_1_0024

Rewriting the Sentence

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in collaboration with Spotlight on Poverty and Opportunity

Privatize Social Security (like Chile has)

File under: personalfinance, taxes

0 (0 votes)

From: Adakin V., Charleston, SC

Please note that "poverty" is relative. According to "The Economist" magazine, what is called poverty in the United States is equal to the same standard of living that the "average" worker in Europe has.

Take a look at this:

http://www.etftrends.com/2009/06/7-reasons-like-chile-its-etf/

Please note item six: "Chile boasts a poverty rate of 13%, down from 39% in 1990."

So what happened in Chile over the past 20 years?

What happened was the maturity of Chile's social security paradigm, where individuals own their accounts -- they invest what would have gone to government-run Social Security into a private retirement account. And when a worker dies, the lifetime of accrued contributions and compounding interest is part of his or her estate, going to heirs and favorite charities.

Just think of the macro-economic benefits to a young family when grandparents die and leave them with enough to pay off their mortgage, or fund their kid's college, or allow them to buy that business franchise, or invest in whatever opportunity avails itself. Just think of the young couple whose grandparents die when they are in their 20s or 30s, and whose parents die when they are in their 50s or 60s. These periodic slugs of capital are outside of this couple's normal earnings. And it's these slugs of capital that blossom into real wealth creation once that family's normal everyday needs are satisfied.

The Chilean Social Security paradigm is the best solution to systemic poverty, because it allows multi-generational wealth accrual.


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American RadioWorks |
20160414_1_0024

Rewriting the Sentence

Every year 700,000 inmates leave prison. Strong evidence shows that those who have a college degree are less likely to come back. So after an abrupt reversal 20 years ago, some prisons try to maintain college education for prisoners.

Recent Posts

  • 09.01.16

    What It Takes: Chasing Graduation at High-Poverty High Schools

    The nation's high school graduation rate is at an all-time high, but high-poverty schools face a stubborn challenge. Schools in Miami and Pasadena are trying to do things differently.
  • 08.26.16

    Spare the Rod

    A get-tough attitude prevailed among educators in the 1980s and 1990s, but research shows that zero-tolerance policies don't make schools safer and lead to disproportionate discipline for students of color.
  • 08.18.16

    Stuck at Square One

    A system meant to give college students a better shot at succeeding is actually getting in the way of many, costing them time and money and taking a particular toll on students of color.
  • 08.11.16

    Hungry hungry students

    When was the last time you ate? In one survey, 7 percent of college students said they went an entire day without eating.