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Should Social Security Funds Be Invested In The Stock Market? Union Leader Thinks So.

 
 
Reply Fri 2 Jul, 2010 07:27 am
This is the idea of Andy Stern, Democrat member of Obama's Deficit Commission and former president of the SEIU.

What do you think?

http://www.huffingtonpost.com/2010/06/30/andy-stern-invest-social_n_631228.html?page=9&show_comment_id=52185676#comment_52185676
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Type: Question • Score: 0 • Views: 1,943 • Replies: 11
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Joe Nation
 
  1  
Reply Fri 2 Jul, 2010 08:37 am
I think we were very lucky not to have followed this idea when George W. Bush's backers proposed it when they were trying to eviscerate Social Security.
It's still a bad idea.
It's been a bad idea since, if I remember this right, members of both parties floated the idea during the early '70's.

Joe(Very bad.)Nation
Butrflynet
 
  1  
Reply Fri 2 Jul, 2010 12:04 pm
I haven't been able to validate with any other source Andy Stern's recommendations about investing social security funds in the stock market. Everything points back to the HuffPo piece.

If anyone finds a second source for Andy Stern's recommendation to invest SS in the stock market, please post a link.


These are the mentions referencing the Ryan Grim interview in the HuffPo article:

Quote:
Andy Stern, a key member of the deficit commission, is pushing to invest a significant portion of the Social Security trust fund in private companies through the stock market, the former labor leader told HuffPost.

Stern, taking a break from one of the few public meetings of the National Commission on Fiscal Responsibility and Reform, said that Social Security "needs to be, like any pension fund, brought back into balance."

There were several ways to bring the fund into balance, he said, but one that he favors consists of "investing some percentage of government money in the stock market, as they do in Canada. Not individual taxpayer money, but government money."

Stern said that Canada's retirement system invests roughly 15 to 20 percent of its funds in the market, a range he thought reasonable. "There are lots of mechanisms for governments to be prudent investors," he said.


Quote:
He told HuffPost that another way to help balance the Social Security's inputs and outputs would be to make sure that 90 percent of all wages are subject to a Social Security tax, as Congress has intended. Today, he said, only about 84 percent of wages are covered.


Quote:
Stern, in the brief interview with the Huffington Post, didn't mention the third leg of the Ball-Altman plan, dedicating the estate tax to Social Security, which would make up the rest of the difference.
Finn dAbuzz
 
  1  
Reply Fri 2 Jul, 2010 04:27 pm
@Butrflynet,
Interesting.

Do you have reason to believe the story is not accurate?
Finn dAbuzz
 
  1  
Reply Fri 2 Jul, 2010 04:33 pm
@Joe Nation,
Why do you think it's a bad idea Joe?

The volatility of the market?

Appears that Stern believes the government can be a prudent investor in the market. You don't agree?

BTW, how do you evicerate something that's already been gutted?
0 Replies
 
Butrflynet
 
  1  
Reply Fri 2 Jul, 2010 05:01 pm
@Finn dAbuzz,
Right now, it is incomplete since I can't find anywhere else that Andy has ever said anything about it. Thinking that it was something that came out of a recent meeting, I watched the CSPAN video of yesterday's meeting of the National Commission on Fiscal Responsibility and Reform. Andy Stern questioned Doug Elmendorf for about 10 minutes (starting at 1:49:37) about his presentation and the CBO's long-term budget outlook, Andy never mentioned social security or the stock market. The pdf of Doug's presentation and budget outlook does mention social security, but only as a report on the current fiscal status and how it would be effected by a change in eligibility age and other changes, none of which was investing in the stock market.

So, I'd like to have more input on it. Right now, all the news sources are just repeating the HuffPo piece.
Butrflynet
 
  1  
Reply Fri 2 Jul, 2010 05:03 pm
@Butrflynet,
I would especially like more input on this quote from the article:

Quote:
"investing some percentage of government money in the stock market, as they do in Canada. Not individual taxpayer money, but government money.


Government money? What is it that Canada does? What's the difference between government money and individual taxpayer money?
0 Replies
 
Butrflynet
 
  1  
Reply Fri 2 Jul, 2010 05:45 pm
This is an interesting development too. Waiting for it to be confirmed by the TPM writer who said he'd reached out to Andy Stern for comment.

http://www.marketwatch.com/story/andy-stern-joins-sigas-board-of-directors-2010-06-21?reflink=MW_news_stmp


June 21, 2010, 8:32 a.m. EDT ยท
Andy Stern Joins SIGA's Board of Directors

NEW YORK, Jun 21, 2010 (GlobeNewswire via COMTEX) -- SIGA Technologies, Inc., a company specializing in the development of pharmaceutical agents to combat bio-warfare pathogens, announced today that Andy Stern, labor leader and prominent advocate for reform, joined SIGA's board of directors. Mr. Stern is the former president of Service Employees International Union (SEIU), the largest and fastest-growing healthcare union in North America.

Andy Stern was responsible for growing the SEIU from 1.0 million members into a powerful 2.2 million member union. Under his leadership, the SEIU had been widely recognized as being an engaged and influential force driving healthcare reform and, ultimately, passage of the 2010 Health Care Reform Act.

"Andy is a strong leader and a great addition to our Board of Directors. His insight, experience, and leadership, particularly his understanding of how our federal government works, will complement the skill sets of our existing board members," said Dr. Eric Rose, SIGA's Chief Executive Officer.

Mr. Stern has been cited in numerous publications as being one of the most influential leaders on healthcare and a frequent White House visitor. In 2010, Stern was named a Presidential appointee to the National Commission on Fiscal Responsibility and Reform.

Mr. Stern also serves on the board of directors of Broad Foundation, the Open Society Institute, and the Economic Policy Institute, as well as a lifetime Trustee of the Aspen Institute, and the President of the Kaiser Permanente Partnership.

Andy Stern is a graduate of the University of Pennsylvania and author of the book "A Country That Works" (Free Press).

About SIGA Technologies, Inc.

SIGA Technologies is applying viral and bacterial genomics and sophisticated computational modeling in the design and development of novel products for the prevention and treatment of serious infectious diseases, with an emphasis on products for biological warfare defense. SIGA believes that it is a leader in the development of pharmaceutical agents to fight potential bio-warfare pathogens. SIGA has antiviral programs targeting smallpox and other Category A pathogens, including arenaviruses (Lassa fever, Junin, Machupo, Guanarito, Sabia, and lymphocytic choriomeningitis), dengue virus, and the filoviruses (Ebola and Marburg). For more information about SIGA, please visit SIGA's web site at http://www.siga.com/.
0 Replies
 
Finn dAbuzz
 
  1  
Reply Fri 2 Jul, 2010 07:46 pm
@Butrflynet,
Which suggests that you are horrified that this might actually be Stern's opinion.

Again...interesting.
Butrflynet
 
  1  
Reply Fri 2 Jul, 2010 08:13 pm
@Finn dAbuzz,
Actually, it suggests that I am suspicious of the story, especially since no main stream media outlet from either side of the political spectrum has yet to pounce on it. They aren't even echoing the story from HuffPo. It has only been in a very few of the mostly progressive blogosphere so far.
Butrflynet
 
  1  
Reply Sat 3 Jul, 2010 08:40 pm
@Butrflynet,
Still nothing else available -- no MSM stories, no additional mentions in the blogosphere other than the handful that originally echoed the HuffPo story.

Will wait to see if any of the Sunday papers pick up on it and dig deeper into it.

My spider senses are tingling.
Finn dAbuzz
 
  1  
Reply Sat 3 Jul, 2010 11:18 pm
@Butrflynet,
Actually, I am quite fond of the Butrflynet assertions.

You struggle to accept that your Liberal heroes might fall short.

0 Replies
 
 

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