A simple reason why Bush's SS plan is stupid

[Dinner]

Originally posted by DinoDoc
Personally, I'd cut benefits and raise the retirement age.

Eliminate the earnings cap and the problem almost entirely goes away. That's the CBO's conclusion as quoted in several Krugman articles which Gepap has been kind enough to periodically link.

[Vanguard]

Yes, the average life span of blacks is low due to lots of very early deaths. But people who die very early also don't pay a lot into Social Security.

So blacks are not disadvantaged by Social Security. This is simply a statistical lie.

[Ned]

Originally posted by Kidicious


Young black males in gangs die young. Black people who work live as long as everyone else.

I could accept this. However, I have heard differently in that blacks as a whole do not live long enough to take advantage of SS.

[Dinner]

Originally posted by Boshko

Where do you think your Social Security money is going now? Into a big hole where the government keeps it until you get it back? Right now its going to pay for the SS checks of someone's grandmother. I

That's only partially right. For the last 72 years Social Security has been in surplus and it will remain in surplus for around the next ten years. Over that 80 year period Congress required that the surplus funds be used to buy t-bills so the Social Security Administration actually has liquid assets to fund the program at least until 2052 without any changes. So some of the money went to grandma and some of it was saved.

[Ned]

Originally posted by Oerdin


Eliminate the earnings cap and the problem almost entirely goes away. That's the CBO's conclusion as quoted in several Krugman articles which Gepap has been kind enough to periodically link.

Oerdin, I think part of the problem is that benefits continue to rise faster than the economy, even while the number of people supporting the retirees is dwindling. This burdens the economy in an unacceptable way, according to Greenspan.

[Kidlicious]

Originally posted by Ned


I could accept this. However, I have heard differently in that blacks as a whole do not live long enough to take advantage of SS.

If you don't count blacks that die before contributing a significant amount to SS I think the difference in benefits recieved is small.

[Dinner]

Originally posted by DinoDoc
What have they proposed?

The CBO is a joint office and it has proposed a combination of the following. Eliminating the salary cap, adjusting retirement ages, increasing payroll taxes, or decreasing benifets. The CBO believes raising or eliminating the salary cap along with adjusting the retirement age of future retires in response to longer life spans is those best options.

[Kidlicious]

Originally posted by Oerdin
assets

Actually it's contra assets.

[pchang]

Actually, older blacks suffer from heart disease and diabetes at a greater rate than the rest of the population. So, they do die younger (even after correcting for the gang violence).

[Dinner]

Originally posted by Drake Tungsten
How can any young person support Social Security in its current form?

Because it works and with minor changes (removing the salary cap) it will be solvent for at least the next 100 years? Markets go up, markets go down, but a senior can always count on Social Security no matter what. It isn't a lot and it shouldn't be anyone's sole source of retirement funds but it is something and it is 100% assured. Nothing else is assured to a senior.

[Spec]

Originally posted by Dissident
It's not a scam. it's a good plan for smart people such as myself, while stupid people lose all their money in the stock market on stupid stock picks.

Poor Bastard.

[chequita guevara]

Originally posted by Ned
Oerdin, no. They take advantage of them. Further, they will not permit the Republicans to do anything that will get Blacks to vote Republican.

We control all three branches of government, but the Democrats won't let us do anything!!!! Wanhhhhh!!!!

Black people won't vote GOP because the GOP is full of the same people who, 40 years ago, tried to stop Black people from voting at all.

[Dinner]

I love how the Rush Limbaugh set claims EVERYTHING is the Democrats fault dispite the fact that Republicans control every branch of government. Could it be they just can't take responsability for their own actions?

[Kidlicious]

Originally posted by pchang
Actually, older blacks suffer from heart disease and diabetes at a greater rate than the rest of the population. So, they do die younger (even after correcting for the gang violence).

SS is insurance, so they still get a benefit.

[Dinner]

Originally posted by Ned
Oerdin, I think part of the problem is that benefits continue to rise faster than the economy, even while the number of people supporting the retirees is dwindling. This burdens the economy in an unacceptable way, according to Greenspan.

And Bush's solution is... to burden the economy twice as much? There is no getting around the fact that Bush's solution costs $2 trillion and doing nothing costs $1 trillion. That's twice the cost even a child knows that's a bad deal.