What’s Worth More?

• March 1, 2006

Here’s a good question.
As Thomas Sowell notes, what’s worth more?

Suppose someone left you an inheritance of a million dollars — with the proviso that every cent of it had to be spent on tickets for you to go watch professional wrestling matches. If you happened to be a professional wrestling fan, you would be in hog heaven.
But what if you were not? How much would that million dollars be worth to you? Certainly a lot less than a million dollars.
What if there was a clause in the will which said that you could forfeit the million dollars and instead receive a cash amount of $100,000 to spend as you pleased? Many of us would take the hundred grand without strings, even if that was only ten cents on the dollar compared to the million for watching wrestling.
In short, money with strings is worth less than money without strings — sometimes a lot less.

Thomas asks the question in reference to Social Security, but I wonder how much less I’d accept with “strings” than without…

Tags: Cultural Marxism, Doug Goehring, George Sinner, Merle Boucher, Tracy Potter

http://Array robert108

docdave: As an economist, I absolutely know that an investment strategy is the only way to guarantee a good retirement income.  The problem is the diversion of funds into programs like SS and Medicare takes money away from being able to be invested.  Especially since it’s mandatory for everyone, and not a matter of choice.  Funny, the lefties are only "pro-choice" when it comes to killing unborn babies!  When it comes to being able to spend your money the way you want, they want to give you as few choices as possible, through taxes and mandatory programs.  That is what the free enterprise system does:  it adjusts.  It does that better than any other system.
Paul

I hate wrestling, but if the requirement to watch wrestling was such that I could tape it or send a altnernate.. I would take the $1mill.

If I must attend, if its at least no more than once a week, i would still do $1mill.

If however, I had to do it daily, I would take the $100k.

It all depends on the ‘b.s.’ one as to do.

I put up with a father I didnt want to communicate with for 35 years soley to keep myself in the will.

If not for knowing he would die wealthy, I would have ignored him as soon as he retired at age 56.
He died at age 90. And I got 95% of the estate.
Soley because I was the only one talking to him (2 brothers). They were excluded per not talking with him.

It really depends on the limitations and why.
robert108

docdave: You are not a baby boomer.  It varies, but the baby boom began somewhere in the mid-forties.  You have a larger generation than yours to pay for your SS benefits, and you have invested wisely, from what you say, so this thread isn’t about you directly.  Your Medicare is cheap because of all the people who pay into it that don’t use it.  That is the truth about the govt social schemes.  If you paid the true cost based on the actual risk, it would cost a lot more.  I think it’s properly applied to one of your age and situation, btw.  It’s the young alkys and addicts that shouldn’t be getting public money, IMO.  You’ve done your bit.
Sherard

Heck, you could probably turn that $1 Mil into a bit more selling the tickets on eBay.  That’s certainly a better option than taking 10 cents on the dollar.
robert108

elect:  That’s the point with govt programs;  it’s not your capital anymore after they confiscate it from your pay.  If gaining capital is good, losing capital is bad, don’t you think?
electnixon

Scalping social security.  That’s a new one. 

Anybody want to bid on my social security checks?  I’d sell them for cents on the dollar today, and you can have them all when I retire… assuming that SS exists when I retire… and that I live that long…  and that I keep paying in and don’t retire off what you pay me.
robert108

richard: Right on.  If you have capital, you can make money.
richard

Simple solution

Buy one million dollars worth of wrestling tickets and and scalp them you would definately make more than the 100k and could actually make a profit if you did it right.
Paul

Dont forget that democrats tried this in pre-gingrich congresss and he killed it foruntaately, but now with obama congress is bringing back the bill to re-introduce.

1. To move 401k/ira assets to social security.

2. to tax heavily the 401k/ira assets.
publicly stated to be only on rich.
but is on docuemntation as all people.

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