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Economics-Government Finances-H-B

09 Jan

Social Security-Liberals in Congress have an interesting view of the world when it comes to Social Security. Originally, very few elderly lived long after retirement. Most worked until they died or became disabled. With a large number of workers paying into it, and few drawing on it, it amassed a large surplus. Workers felt they could rest assured that the money would be there for them when they retired. Social Security is in trouble of going broke because liberals raided it to pay for their welfare programs. Had that money remained on deposit gathering interest, we would not be facing the question of it becoming insolvent. Liberals did not take into account changes going on in our society. More working women meant less children.  That meant more money pouring in, but it also meant fewer future workers to pay into the system. They also pushed abortion which has killed one out of every three babies conceived. Improving health has meant Seniors live longer and many are retiring at the earliest age of retirement which means they are not paying in as long but are drawing benefits longer. Without the funds from the surplus, retired Seniors are drawing benefits currently being paid in by workers. With fewer workers paying in and a growing number of retirees drawing longer, it has created the mess we now face. Liberals could help the situation by restoring the funds they took, but they feel it is more important to bribe people to vote for them with huge giveaways then to repay what they took from Seniors. Liberals feel the solution is to raise the limit on income taxed and use the increase revenue to raise benefits for those who are receiving the lowest benefits. That sounds good on paper but looks terrible when you examine the facts. There are very few at the top and the small amount raised will not be much help for the large number of people at the bottom so it is really only a token gesture. Since the new money received would go right back out, it also would not extend the life of Social Security. Conservatives would rather raise the lower age of retirement. They did it a couple times but liberals discontinued it. However, it makes sense because many people are still healthy when they retire and able to work up to 20-30 years after retirement due to improved health. My parents had a printing business and both worked for 20 years after retirement. The only reason they had to stop was because they were attacked by thieves who left them homebound. Before the attack, they were still very healthy and probably could have worked for quite a while longer. By delaying retirement, workers would pay into Social Security longer. Since the rate of death increases with age, the number of Seniors declines with age. That means that a large number of people would continue paying in, but fewer people would be drawing out and would not be drawing out as long. Those whose health did not allow them to work up to the new age of retirement could still get Social Security disability like those currently under 62.

 

 

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