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View Diary: The Thing About Social Security (178 comments)

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  •  I agree, raise revenues. The argument is that when (3+ / 0-)
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    Onomastic, Wendys Wink, Sylv

    SS was first proposed, there were more wage earners to pay for each retiree because of two things, demographics and mortality rates. Now that the average lifespan after retirement is longer, that means that we have to contribute more to afford that retirement. So raise contributions during the earnings years.

    •  Sorry, this is BS. There were about 15 years (6+ / 0-)
      The argument is that when SS was first proposed, there were more wage earners to pay for each retiree because of two things, demographics and mortality rates.
      in the '50s and early '60s when the ratio of workers to beneficiaries was extremely high, as much as 15 to one.  This was because in the early '50s, Social Security coverage was sharply expanded to new occupational groups that had been left out of the original legislation: farm workers, domestic workers, and the self-employed were the biggest ones.  Because these people had previously not been allowed to pay in to SS, most of them couldn't qualify for benefits for a significant number of years.  As years passed, the new coverage groups built up work credits with SS and aged into retirement, so the ratio of workers to beneficiaries gradually fell to what it is today.  

      The system is designed to have a worker to beneficiary ratio of about three to one, just slightly more than what it is today.  The way to increase the ratio is NOT to restrict benefits, but to promote greater employment among people aged twenty to sixty.  Younger people will work and pay into SS for many years before collecting, giving the Baby Boomers time to die off.  

      Regarding life expectancy, go here:  http://www.socialsecurity.gov/... .  Life expectancy from birth has increased significantly since SS started almost entirely by reduction of infant and child deaths.  Childhood deaths are sad, but don't affect SS because almost no children pay in to it.  What's important for SS purposes is life expectancy after reaching working age.  

      Renewable energy brings national global security.     

      by Calamity Jean on Sun Dec 23, 2012 at 03:09:38 PM PST

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