Is the typical American brainy enough to beat Social Security? The answer is clearly yes. Buy bonds, stocks, managed funds, index funds, dart-throwing funds - whatever. They all beat Social Security in the medium- and long-run.
I don’t buy it. The ability of the government to make Social Security payments is based on the taxing power of the United States. Why should shares of corporations grow faster than the government’s taxing power? After all, a large part of the taxing power is based on taxing corporate income!
Merely looking at past performance of stocks is not a sufficient basis for saying that stocks will outperform Social Security. One of the basic mantras of investing is that past performance is no guarantee of future results.
The past performance was based on an elite few voluntarily buying stocks in a free market. We don't know what performance will be like if the government forces every citizen to invest in mutual funds and also decides what mutual funds they will be allowed to invest in.