Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: Chipsboss Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 18406  
Subject: Re: Pixy says... Date: 4/4/2000 1:33 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
May I jump in? According to the Washington Post's Dan Froomkin:

By design, Social Security involves massive subsidies from the next generation of retirees to this one, from single workers to married couples, from two-earner couples to one-earner couples, from high-income earners to low, from the able-bodied to the disabled, and from those who die early to those who die late.

Subsidies to this generation of retired people are evident: retired people receive the checks and working people pay the tax.

"From single workers . ." There are spousal and survivor benefits in social security. Since everyone at the same level of wages pays the same Social Security tax, the unmarried and childless are subsidizing this benefit for parents and non-working spouses.

"From two earner couples . . ." Sure, they pay approximately double tax but do not receive nearly double benefits.

"From high-income earners . . ." Social security replaces a larger fraction of the income of low-wage earners than of high-wage earners. It's built into the calculation of benefits and is part of the social welfare purpose of Social Security.

"From the able-bodied . . ." The working able-bodied people pay the tax, some of which goes to the disabled. Social Security has a disability insurance component.

"From those who die early . . ." Putting aside the small death benefit in social security, people who die young lose all their benefits, leaving that money in the pot for those who live longer. This generally benefits people who live longer (women, whites and non-smokers, for examples) at the expense of other people (men, blacks and smokers, for examples).

Chips, who cannot change his race or sex, but does not have to smoke
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next

Announcements

Invest Better Hub
Take advantage of our newest free service, Invest Better!
New Fool-Branded Credit Card Available!
How does your card compare to ours?
Post of the Day:
Berkshire Hathaway

Coolidge Lessons for Today
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Facebook Fool Fan Club
Be a fan of the Fool over on Facebook!
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Get the Fool Phone App
Save and share content, zero in on sectors, podcasts, and much more!
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement