Risk and Social Security

Victor at The Dead Parrot Society has another great Social Security post up. He shows that Social Security, as it is, is not immune from economic risk. This makes a pretty strong case against those who argue that we cannot invest Social Security mone because it is a risk free retirement benefit. In fact, since benefits are wage indexed, a depression (and the lowering of wages associated with it) would probably have a far greater effect on the current version than it would on a private account version.