For at least two decades the "very serious people" in Washington have insisted that the Social Security system is "broke". They've been screaming "bankrupt, bankrupt I tell you!" for so long that unfortunately an entire generation of young people and even middle aged workers are convinced that Social Security won't be there for them when … Continue reading Why SS Is Not “Broke” And How The Trust Fund Works
Social Security
CAA May 2014 – Economics of Intergenerational Transfers
I'm speaking to today to the Council on Action for Aging at Henry Ford Senior Living Village. I'll be talking about the economics of intergenerational transfers and how, contrary to the views put forth in much of the news media, the Social Security system is actually doing quite well and "will be there" when even … Continue reading CAA May 2014 – Economics of Intergenerational Transfers
Understanding The Social Security Trust Fund – It’s More A Checking Account and Less of A Trust Fund
Now that the Republican-Democratic budgetary battle that shut down much of the U.S. government earlier this month has been resolved delayed for 3 months. Once again the hope of the politicians from both sides is to achieve some kind of "grand bargain" on the budget that continues to reduce the federal budget deficit. Now the … Continue reading Understanding The Social Security Trust Fund – It’s More A Checking Account and Less of A Trust Fund
Not Retiring Is the New Retirement Plan For Many
CalculatedRiskBlog tells us about a new major study of American workers and their retirement plans. The study is published by the Transamerica Center for Retirement Studies [note for students: the center is an excellent source of research data and analysis]. CalculatedRisks summarizes: From Rachel Ensign at the WSJ: For Many Seniors, There May Be No Retirement … Continue reading Not Retiring Is the New Retirement Plan For Many
Social Security Facts
From Ezra Klein via Mark Thoma of Economists View: Ezra Klein on Social Security: 1) Over the next 75 years, Social Security’s shortfall is equal to about 0.7 percent of GDP. Source (PDF). 2) For the average 65-year-old retiring in 2010, Social Security replaced about 40 percent of working-age earnings. That “replacement rate” is scheduled … Continue reading Social Security Facts
Recessions Are Matters of Life and Death
I think it's always important for policy wonks, politicians, and tenured professors to careful when discussing recessions and unemployment. It's very easy from the safety of a secure income to focus on the data and the numbers. But behind the data and numbers are real humans. Recessions and high unemployment have real, human costs. It's … Continue reading Recessions Are Matters of Life and Death
What Budget Crisis? Let’s Do Nothing Now
My Mother was a big advocate of patience. She was the anti-crisis. In response to any panicked concerns I had about the some "crisis" that was coming, we always counseled "we'll cross that bridge when we get to it". And sure enough, there was usually either no problem eventuallly crossing the bridge or there was … Continue reading What Budget Crisis? Let’s Do Nothing Now
News Flash: Federal Taxes Have Plummeted
David Cay Johnston reported this a few weeks ago and I almost missed it. It's particularly relevant, though, what with official Washington talking about how to cut spending, restrain the deficit, etc. (at least attacking the English language with euphemisms about war in Libya). Let's recap what Washington, especially Republicans, have been saying (from Johnston's … Continue reading News Flash: Federal Taxes Have Plummeted
From the Wall St Journal via Yves Smith at nakedcapitalism. Self explanatory. Even Tea Party Members Do Not Support Cutting Social Security It seems that the efforts of the austerians to cow the public into cutting Social Security and Medicare are not getting traction. And Tea Party adherents are breaking with the Republican party line … Continue reading
Social Security Under Attack By Media
I will repeat: Social Security is NOT in financial trouble. Social Security does NOT contribute in any way shape or form to the U.S. Federal government's deficit, now or in the future. It cannot. If anything, it has enabled a coverup of how big the real deficit has been for years. News media does not … Continue reading Social Security Under Attack By Media
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