WE ALL KNOW WHERE WE'RE HEADED:

Unlike many libertarian types, I think the notion of Social Security is, broadly speaking, a good thing. The countries that have tried to do without, such as libertarian Hong Kong, have found that the problems of old-age poverty became too serious to ignore. This is especially true since, due to demographic changes, more and more of the populations in most developed countries are over 65. Hong Kong instituted its "Mandatory Provident Fund" system in 2000, which puts a mandatory 5% contribution at both the employee and employer level into an account that holds private-sector assets.

Similar plans are in use in India, Singapore, Malaysia, South Africa, New Zealand, Chile and other places around the world. A 2005 study by the U.S. Social Security system itself found 31 countries, and I think they missed a few.

The Cato Institute, in February 2012, found that a simple 50% equity/50% bonds portfolio, begun in 1968 (not a very auspicious time as it was the beginning of a long bear market in both stocks and bonds), would have allowed monthly benefits of $2,067 today for the average family, compared to $1,358 from today's Social Security system.

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