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View Diary: Should Americans Forgive the $2.5 Trillion Borrowed From Social Security? (181 comments)

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  •  Well, can we agree that lowering, rather than (1+ / 0-)
    Recommended by:
    Calamity Jean

    raising, the retirement age would be a good thing? It'll increase the pressure on employers to correctly compensate labor (because labor would become more scarce and considerably less desperate), and it'll improve quality of life.

    Now I agree we shouldn't do anything other than adjust the income cap to capture 90% of wages again if we don't change the benefits structure, but if we lower the retirement age, wouldn't we need to increase revenues?

    Non enim propter gloriam, diuicias aut honores pugnamus set propter libertatem solummodo quam Nemo bonus nisi simul cum vita amittit. -Declaration of Arbroath

    by Robobagpiper on Mon Dec 03, 2012 at 05:49:35 AM PST

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    •  Lowering the retirement age (1+ / 0-)
      Recommended by:
      Robobagpiper

      is a small order effect.

      Using year old CBO numbers, the SS shortfall is .6% of GDP, lowering the retirement by 2-3 years might add .1% to the shortfall.

      http://2.bp.blogspot.com/...

      Creating 20 million jobs, well you have to ask yourself how much FICA that represents, or 10 million jobs.

      Raising the min wage means more FICA.

      Job creation is the largest order effect. Then wage growth, and workforce growth. These are the big three the Trustees tells us make the low cost scenario possible.

      FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

      by Roger Fox on Mon Dec 03, 2012 at 08:18:01 AM PST

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      •  Interesting. How about adding 7 years to it? (1+ / 0-)
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        Roger Fox

        Would it really scale linearly?

        Non enim propter gloriam, diuicias aut honores pugnamus set propter libertatem solummodo quam Nemo bonus nisi simul cum vita amittit. -Declaration of Arbroath

        by Robobagpiper on Mon Dec 03, 2012 at 08:22:14 AM PST

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        •  Look at the link I dropped (0+ / 0-)

          Its a great chart.

          retirement at 70 would equal .3% of GDP

          FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

          by Roger Fox on Mon Dec 03, 2012 at 08:53:36 AM PST

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          •  That's raising the age. (1+ / 0-)
            Recommended by:
            Roger Fox

            What about lowering it? That's what we're talking about.

            After all, with many people taking reduced benefits at 62 and 65 becoming suddenly eligible for full benefits, should the retirement age be lowered - and a greater fraction of people alive to collect benefits for several years, it can't be that small of an effect.

            I imagine that raising the age will have a smaller effect for the same number of years as lowering it because more people would opt to take the smaller benefit early, partially offsetting the savings, coupled with the mortality issue.

            Non enim propter gloriam, diuicias aut honores pugnamus set propter libertatem solummodo quam Nemo bonus nisi simul cum vita amittit. -Declaration of Arbroath

            by Robobagpiper on Mon Dec 03, 2012 at 09:36:24 AM PST

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        •  Remember in low cost scenario (0+ / 0-)

          the Trustees tell us the Trust fund is not depleted thru 2090.

          And thats not touching a thing in SS, just fixing the economy.

          FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

          by Roger Fox on Mon Dec 03, 2012 at 08:56:45 AM PST

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