Would you spend $100 on groceries or investments?

In reply to Steve Hatcher's letter (March 3, 2005), the opportunity to choose is a very good point; one I did not address due to lack of space.

I will ask two questions. First, let's look at what the worker is not getting — assuming a salary of $6.50 per hour. In a year, he would contribute $838.24 to Social Security and that is matched by the government for a total of $1,676.48. If he were to choose to invest half of his contribution in private stocks, etc., he would contribute $419.12 to Social Security, the government would match half that. That gives him a total of $838.24 in Social Security.

To bring his total savings up to $1,676.48, he must make a 100 percent profit on his $419.12 at the moment it is invested.

First question: Is it reasonable to believe he will make 100 percent profit immediately, or even in 20 years?

We all know the cost of living has been rising faster than the pay scale for the poor and middle income. Many of these workers are faced with this delimma: With $100 in their hand, do they buy groceries to feed the kids this month or do they gamble on stocks that may or may not be worth more 40 years from now?

Second questions: What would you choose to do with that $100?

LARRY SMITH

Sandpoint