sted plan that would end SocialSecurity as we know it." But since then Dole has expressed interest in theidea. Since the creation of Social Security in 1935, money paid into theprogram has been invested exclusively in interest-bearing governmentsecurities, mainly long-term bonds. But you could obtain a higher returnon investment and increase retirement savings for the baby-boom generationby channeling some of the money into the stock market.But there are many questions such as: How much Social Security revenueshould be invested in stocks? Who would manage the investments? How manyprivate investment options should be allowed? Economists also disagree on how stock markets might be affected by theinfusion of huge amounts of money. The financial services industry wouldpresumably benefit, but banks, mutual funds and insurance companies havejust begun to study the issue. In a Ponzi scheme, money from new investors goes out to satisfy claimsof early investors. What else can you call Social Security? The currentretirees are paid much more than they put in, so the younger generationhas to pick up the tab. The system's funds are invested in low-yieldingTreasury securities. Over the last 50 years, such investments havereturned 5.8 percent a year, while the Standard & Poor's 500 has provided11.9 percent. In 1994, a poll was published indicating that more people in theirtwenties believed in UFOs than in Social Security. Many simply do notbelieve there will be anything in Social Security when they retire. A WallStreet Journal/NBC News poll showed that 29 percent of all Americans nowexpect to receive nothing from Social Security when they retire. Another37 percent expect to get sharply reduced benefits. Among those under age35, nearly half expect nothing whatsoever from Social Security. Unfortunately, there is good reason for skepticism. According to thelatest report from the Board of Trustees of the Social Security TrustFunds (OASDI), Social...
