I found this session to be really boring. I think that people don't need to think or understand money to benefit from social security. Part of their paycheck goes in to it, then when they are at retirement age they can start collecting money back from it. However for the majority of people, they'd be better off if they set the same amount aside that is taken in taxes and instead invest in long term safe investments. The whole system of social security is a sort of pyramid scheme and depends on enough money coming in to match the amount getting paid out. It wouldn't be a big deal except that too many people are getting benefits of social security without really having paid their fair share in. I don't think that social security is intended to equalize wealth. It's supposed to be a way for people earning money to set some aside and then take it back out during retirement.
What you think is being done about poverty? I guess that this is kind of a good way to help senior citizens who are in poverty. I mean it's not really a direct program for people in poverty however they do get to benefit from it when they reach a certain age.
The fact of the matter is that the savings rate as a percentage of disposable income in the U.S. currently stands at a paltry 1.3%, based on this data gathered by the U.S. Dept. of Commerce I wouldn't assume that given a 12.4% raise people would put that money into a savings account. The plans that were being put forth prior to the economic crisis that we are currently embroiled in to privatize social security have all been silenced, mainly due to the trillions of dollars that have been vaporized in the markets. If you want to talk about a redistribution of wealth that's a pretty good example.
ReplyDeleteWhile I agree with you that social security helps out the elderly I don't know that it is enough to keep them above the poverty line unless they have additional income. The maximum benefit the social security will pay to someone at the full retirement age of 66 in 2010 is $2346 per month. That is not a lot of money to live on these days.
Yep, you're pretty much right its basically a pyramid scheme. Oh and also to be getting $2346 a month is not bad especially for 1 person considering families with 2 of the people working full time get less than that combined.
ReplyDeleteIt is a way to help seniors, but the idea looked good back in the days. In about 15 years, the fund will be depleted and each American will owe more debt on top of the $100,000/person as it is today. While privatizing will cost 2trillion dollars, it will be worth it in the long term for sure.
ReplyDeleteAlso the $2346/month is definitely a livable income for a single person considering their expenses. Also thats just extra money coming in and it is a reminder to people not to solely rely on SS and start saving their own money aside at an early age. IRA's and Mutual Funds are a decent way to start.
I don't like the notion of government forcing people to pay into the system knowing they won't benefit. It is income redistribution, pure and simple. Seniors are living a generation past retirement so the pay in is depleted years before their benefit is. This does not seem fair to tax young people
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