Monday, November 15, 2010
Session 12: Social Security
I feel that the information covered in this session speaks to the question of "what is being done about poverty" as well as "how well [I] think poverty is being addressed currently in the United States". Social security having just recently rung in its 75th birthday has been a very successful social insurance program that has aided many in times of need. Social insurance programs in general I feel are beneficial in that they exist as a safety net "against the possibility of...indigence." Had the birthrate's within the U.S. remained constant or risen in the U.S. over the past 75 years all the talk of social security might have been applauding its successes as opposed to railing against its unsustainable future. I count myself as one of the "younger workers [who are] skeptical" about the future of social security as far as will it even exist when I'm old enough to retire in 32 years especially considering that current "expenditures are expected to exceed tax receipts this year for the first time since 1983". It is slightly encouraging to see that the Affordable Care Act has aided in the viability of medicare it is equally discouraging to see that "significant longer term financial imbalances of the programs still need to be addressed." So what is the solution to the continued funding of these social insurance programs that have done so much good? I'm fairly sure that privatization as it was envisioned by the previous administration would have completely cleaned everyone out. I'm not sure how you can transition from the current system being that "payroll taxes would be diverted to private accounts and wouldn't be available to pay existing benefits." Maybe the solution is to cut the cost of living increase and raise the retirement age slightly? In my mind I don't think that there is anyway to completely overhaul the system as much as I would like to have more control over that 12.4% of the money I earn.
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I hear your concern about control over your own funds, but why do you assume that "privatization as it was envisioned by the previous administration would have completely cleaned everyone out." What is the basis for that fear?
ReplyDeleteUnfortunately, major change requires some pain. We need to freeze increases and perhaps raise the start age for current elders. Yes, it will be a little difficult for those who are poor, but let's face it: look around, most seniors have savings, pensions, live longer, better, drive Benzes, etc. This is just extra play money for many. The real benefit that they care most about is Medicare, since many older people have some health issues and require expensive medications.
The main basis for this fear is that since Q2 of 2007 household net worth has fallen....wait for it.... $14 Trillion...with a "T". Of this $14 Trillion retirement assets have fallen $2.3 Trillion, savings & investment assets have fallen $1.2 Trillion and pension assets have fallen $1.3 Trillion, the remainder is obviously real estate assets. So had social security funds been diverted to private accounts that were invested in the markets...well you can do the math from here.
ReplyDeletegcodd, im very intrigued by your outlook on social secuirty. if you were to sum up your "outlook" on SS in 2 to 3 sentences, what would it be? Im curious..
ReplyDeleteEvery time there is a potential flaw found within a system, the conservatives call for privatization. They argue that favoring the wealthy business owners is the solution to all of our problems, however, has the 'solution' really ever worked? Does it not become a cycle of exploitation? People who argue that we should opt for the privatization of social security then must also argue that social security offers extremely generous benefits because privatizing it will inevitably end up in the reduction of such benefits. Furthermore, the US government will loose money, people will loose money, and the primary beneficiaries here will be brokers. If 12.4 % of my income makes sure that a 90-year- old person is not working to death then please dear government, take it!
ReplyDeleteTo succinctly sum up my views on social security I would say that I am against privatization for many reasons because as Dahiana has mentioned "the primary beneficiaries here will be brokers". I am for meaningful reform that will enable this benefit to still exist when my daughter is old enough to collect. To take a cue from a famous "Mama Grizzly" I will leave out any and all details of how to realize this goal.
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