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[quote=Anonymous][quote=Anonymous]
You will not gain credibility by throwing out an opinion govt is more efficient then the private sector by giving social security, medicare and medcaid as examples. Just google those terms and the word Inefficiency result  from your query. Please send me some lines NOT from the whitehouse.gov or obama.com that tout government efficiency with social security, medicare and medicaid.[/quote]

Social Security's administrative costs are less than 1% per year. To translate, Social Security charges less than 1% of the total assets it manages (the trust funds) to manage these trust funds. Compare that to your average mutual fund - if it's actively managed, the fees and other charges on your IRA can run you 2-3% of assets under management (namely, your account balance) per year.

Why is Social Security cheaper to run than your average IRA or 401(k)? First, economies of scale: Social Security pools your money with everyone else's money, which is a lot cheaper than asking everyone to open their own IRA or 401(k) account. Second, Social Security invests in government bonds only (well, Congress makes it do this), which is a lot cheaper than actively managed funds where you are paying some Chicago MBA to pick stocks for you and churn the account (to build up his/her commission).

This is why privatizing social security is a non-starter. And don't listen to Fox's stuff and nonsense about Social Security being "broke" either -- haven't heard any seniors say they haven't received their checks this month, have you?[/quote]

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