A Solution to Social Security

[wabmester]

A good article by Scott Burns on the evils of Social Security here:
http://www.dallasnews.com/business/scottburns/columns/2004/stories/011304dnbusburns.49664.html

The article implicitly suggests an obvious solution to the problem: index retirement age to the average lifetime. If you're "lucky" enough to have an above-average lifespan, then your social security kicks in, otherwise keep working (or retire early on your own dollar).

Phase in the indexing so you don't upset those who are within a few years of retirement. Younger workers would eventually view social security as life insurance that pays if you don't die rather than an entitlement for working some number of years.

I'm 42, and I assign my social security benefits a present value of zero. So from my perspective, getting a benefit at say, age 72, that I believe SSI could provide without going bankrupt actually has more value than the bupkus I expect to get at 67.

 

[unclemick]

I ran across a British(FT?) article which I didn't save - The Japanese are looking at a steep rise in SS to pay for their elderly. High govt. debt, a falling work force, has put them in a bind.

Around here(self employed com. fishermen) SS is far and away the highest tax people pay and I suspect the national numbers would surprise many.

In one yr. and four months and counting, I may be taking SS early - for emotional reasons as well as financial.

 

[Gpax7]

I do think we will begin to see intergenerational warfare over the concept of Social Security. Every recipient I know of, ultimately, when forced to a
position, says that he or she doesn't care where his SS and Medicare payments come from. As far as many are concerned, they can cut schools, the space program, roads, defense, housing, or anything else to provide SS.
Most old folks will become one issue voters when it comes to that question. And the number of seniors voting to keep SS the way it is are legion.
50 years ago Bob Dylan had it right...."For the times they are a-changin'."

 

[sgeeeee]

I do think we will begin to see intergenerational warfare over the concept of Social Security. Every recipient I know of, ultimately, when forced to a
position, says that he or she doesn't care where his SS and Medicare payments come from. As far as many are concerned, they can cut schools, the space program, roads, defense, housing, or anything else to provide SS.
Most old folks will become one issue voters when it comes to that question. And the number of seniors voting to keep SS the way it is are legion.
50 years ago Bob Dylan had it right...."For the times they are a-changin'."

Maybe. But you may be missing an important point. Younger generation voters tend to be politically apathetic compared to social security benefitee aged voters. By the time they become politically aware, they are looking forward to getting their share of the ss benefits.

Plus, social security is not really in that much trouble. A couple of minor tweaks and it works just fine. Now if you want to talk about where we might need a generational and class war, think about Medicare.

 

[cute fuzzy bunny]

Already some political generational class war sort of stuff going on in my dad's neck of the woods. Due to several fairly humongous sprawling retirement communities, the voter ranks are somewhat tilted towards those over 65.

The towns in the area are trying to build more schools, but that requires a property tax school bond to be approved by the voters.

Three years the retiree communities voted it down. Some of the town politicos were talking about excluding them from the vote. Before anything really un-democratic happened, enough people with kids moved into the area to shift the vote towards approval.

People really DO think about their own interests first...

 

[Eagle43]

A few quotes about government. . .and self-interest.

Social Security is the antithesis of economic liberty. Your money (about 15 percent of your paycheck) is taken from you by force and placed into a horrid “retirement plan.” There is no guarantee you will ever get the money back. If you die before you retire your heirs have no claim on those funds. The politicians can decide at any time that your retirement benefits can be cut back...or completely eliminated. If you do manage to get your benefits you will be lucky to realize a one percent return on your “investment.” If any private financial planner offered you this plan in a private form he would be arrested, prosecuted and put in solitary confinement.
-Neal Boortz

"All politics is local.".... Tip O'Neill?

In general the art of government consists in taking as much money as possible from one class of citizens to give it to the other.
-Voltaire

Politicians never accuse you of “greed” for wanting to take other people’s money—only for wanting to keep your own money.
-Joseph Sobran

When the people find that they can vote themselves money, that will herald the end of the republic.
-Benjamin Franklin

The first lesson of economics is scarcity: There is never enough of anything to satisfy all those who want it.
The first lesson of politics is to disregard the first lesson of economics.

-Thomas Sowell

In the end they will lay their freedom at our feet and say to us, “Make us your slaves, but feed us.”
-Fyodor Dostoevsky, “The Grand Inquisitor”, The Brothers Karamozov

There is no such thing as a good tax.
-Winston Churchill

Taxes are not levied for the benefit of the taxed.
-Robert A. Heinlein

There is no worse tyranny than to force a man to pay for what he does not want merely because you think it would be good for him.
-Robert A. Heinlein, The Moon is a Harsh Mistress

To compel a man to furnish funds for the propagation of ideas he disbelieves and abhors is sinful and tyrannical.
-Thomas Jefferson