Privatize your pension, and lose it.

Today’s joke on working Americans is: we can earn more through private investments than we’ll ever get from Social Security. This one is a real knee-slapper. Capitalism does follow rules, which have been understood perfectly for years. Lots of us work. Lots of money is made. A few of us take it. If lots of us put lots of money into private investments – hoping to get it back at retirement – a few of us will take it.

This is criminally easy now. (I’m obliged to note a few people are, in fact, starting to look at this; something to do with a Democrat in the White House). Try to think it through:

Our new computers manage trillions of historical and real-time data points to, say, predict the weather. There are only a few thousand equities traded on the electronic exchanges, and a few thousand more funds. People running the markets have precise information on every trade at once, with hundreds of billions of dollars to trade short and long simultaneously, and a decades-long ‘investment’ horizon. The price of any particular asset today is exactly what the house wants it to be today. Go ahead and place your bet.

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