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View Diary: The business case for why chained-CPI is theft and breach of contract. (92 comments)

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  •  As I mentioned above, I think your scope is too (1+ / 0-)
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    Boomers, let's say for the sake of argument, have earned more. Plus, starting in the mid-80s, taxes were increased on Boomers relative to "The Greatest Generation" who were then retired/retiring.

    So, their total paid into the system increased both due to incomes and taxes.  The system (SS) has built in breaking points at which higher incomes receive a lower percentage in Benefits relative to Incomes than lower income participants do.

    Gen Xers and after, sadly and unjustly, do not have as bright a future due to a slant toward the wealthy by the current system caused by our current trade, economic, fiscal and taxation policies.

    So, Gen Xers and after will pay lower total taxes than Boomers, due to lower incomes in a service economy than a manufacturing economy (plus the unemployment caused by the current recession - still at terrible levels - and today's lower workforce participation rate), and receive lower benefits, but at a relatively higher ratio to taxes paid in than higher incomes of the past.

    Purposely setting this up as a generational battle is what the wealthy favor, because that pits working class groups against working class groups and leaves the gross inequity of the poor vs the wealthy completely out of the argument.

    Books like "The Coming Generational Storm" et al are precisely down this line.

    There's no need for the generations to fight. There IS a need for those who have benefited in enormous ways from the policies of the last 30 years (and the borrowing of SS surpluses for mass deficit spending and unpaid warfare/defense budgets) to pay back into the system which made them wealthy and keeps them wealthy.

    That alone addresses the problem.  Eliminating the cap eliminates the SS funding problem.  A tiny transaction tax on Wall Street could do likewise for Medicare and for jobs spending, stimulus, R&D, infrastructure spending, etc, which would allow younger generations to have brighter earnings futures.

    If the economic issues are not addressed soon, the future will be even more dim for younger folks, including way younger than the Millennials.

    All that wordiness aside,
    if Climate Change isn't addressed, there's little bright future for anyone of any age. The effects of that are being seen sooner than expected and will only accelerate.

    "The law is meant to be my servant and not my master, still less my torturer and my murderer." -- James Baldwin. July 11, 1966.

    by YucatanMan on Wed Apr 24, 2013 at 06:42:03 PM PDT

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