I didn't mean to imply there was anything like voluntary consent involved. I'm on your side here. But there is popular support for this program which wouldn't exist if it were presented purely as a wealth transfer with no upside for those forced to pay in. They gloss over the fact that paying SS taxes doesn't formally entitle you to any future benefits, but in practice cancelling it without offering some compensation to those who paid so much in would amount to political suicide.
This brings up and interesting question: If more people enter the work force and pay taxes every year, how is SS (as im told) "drying up"? I don't doubt that it's dwindling, however, what happened?
In 1945 there were 42 workers paying SS taxes for every retiree collecting benefits. For equal pay / retirement income after SS taxes, each worker only needs to provide 2.3%.
Today (actually since 2009) that ratio is three workers per retiree. Each worker has to provide 33%. By 2050 the ratio is projected to fall to two-to-one.
nybble41|3 years ago
0des|3 years ago
nybble41|3 years ago
Today (actually since 2009) that ratio is three workers per retiree. Each worker has to provide 33%. By 2050 the ratio is projected to fall to two-to-one.
You can find the historical ratios here: https://www.ssa.gov/history/ratios.html