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the US Social Security program is meant to be kind of the retirement program for
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folks that don't have access to private retirement accounts this program was set
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up in the 1930s after the Great Depression there's a trust fund the OASDI which is the fund that they invest
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the capital so every year we all put money in with our social security taxes out of our paychecks goes in there it
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gets invested in one thing us treasuries which have averaged about 4.8% return since the beginning of the
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program per year meanwhile the S&P has been averaging 11% so here's the map if in 1971 which was the year that we went
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off the gold standard in the United States if we invested the Social Security trust fund in the S&P the
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balance of the Social Security trust fund today would be $15 trillion that would be roughly onethird of the value
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of the total s&p500 which would be jointly owned by all Americans now here's what's up the middle class people
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who had access to private retirement accounts benefited by buying the S&P 500 and the wealthy were able to access it
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so all of the equity value that accured from American Enterprise and the prosperity of the American system
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accured to the people that had access to the private accounts meanwhile the people that only had access to the
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Public Accounts got stuck owning treasuries today the Social Security trust fund has $2.7 trillion balance and
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based on the outflows and inflows it's going to go bankrupt in 2032 so I did the math if you assume that the S&P 500
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continues to grow at 10 a half% a year on average we could put about $500 billion in the trust fund today and it
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will not go bankrupt again and it will continue to grow every year and then all americ Americans have participation in
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American Enterprise and importantly this becomes the world's largest Sovereign wealth fund ever you don't need a
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separate Sovereign wealth fund we already have one we've totally mismanaged it and I went back to trying
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and understand why this is the case why have we only ever bought treasuries early on the US needed someone to loan
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money so they basically forc the citizens to loan the government money in the form of treasuries but today the
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Social Security trust fund owns less than 10% about 8% of the total treasury bonds outstanding so why are we forcing
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all the American citizens to partip for no reason through the Social Security System we've created the Deep inequity
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we see in this country If instead we had allowed the social security system to invest in the S&P 500 to buy American
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Enterprises to fund American businesses then every American would be wealthy and
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that middle class that uniquely participated by basically arbitraging the market where they forced the
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treasury bond yields on the poor and they got to take access to the equity yields would have not happened