A Reader enjoys reading Coyote’s blog, as his business forces him to interact with governments constantly, creating a never ending stream of reasons for A Reader to stay out of government-contractor jobs.
First, I will say that I am perfectly happy for folks who are either good earners or good savers or both and who choose to use their accumulated wealth to stop working at some age. — My Retirement Rant | Coyote Blog.
No question that this would be a good thing, except that that accumulated wealth is too tempting for the people in power to seize, either directly as was done with privately held gold in a number of countries in the mid-20th century and through bank action like just recently in Cyprus, or indirectly via inflation.
And that was what Social Security initially was — the age 65 was chosen as a retirement age not because it guaranteed 10-15 years of senior leisure but because it matched the life expectancy at the time. The equivalent age would be well into the 70’s today.
All good Ponzi schemes must come to an end. A Reader has zero expectations of getting paid anything after decades of contributing to Social Security.
While they are proposing higher taxes to support this, my guess is that it will not be long before a wealth tax is suggested. […] I would be willing to bet him that within the decade, it will become a mainstream idea in the progressive community to fund shortfalls in Social Security and Medicare with a full or partial seizure of 401K’s.
There’s already a wealth tax, inflation. But A Reader agrees with Coyote that savings and other financial vehicles are just too tempting for the powers that be. It’s almost as if we’re in Bizarro World: work and save, and all you get in the end is forced to pay for the people who don’t work and don’t save.