There are several “untouchable” topics in politics, with none being more politically tricky than Social Security. Historically, any politician who talks about changing it gets clobbered in the polls and at the ballot box. But here’s the thing: we can’t avoid talking about it any more!
The short version is that the program is running out of money, and SOMEthing must be done to fix it. No matter what is done, your Paycheck will be affected in one way or another. There are a number of ideas that could be tried, so let’s dig in and see what they are.
Here are Five Fast Facts on fixing Social Security:
- 🤔 How We Got Here - Today there’s more people retiring and fewer people paying into Social Security than ever before. Even now, the program is taking in less than it pays out and will run short of money each year, starting in 2035. Lose money each year? It’s okay, we’ll make it up over time (hahahahaha!).
- 🛣️ The Fork In The Road - Congress will have to either limit the benefits that get paid out, raise taxes, or borrow from other sources. There are a lot of variations on combining the options, but none of them are good. It’s kind of like choosing which finger should get smashed in the car door - it's painful no matter what!
- 📈 The Progressive Position - Those on the political left think the solution is to increase taxes on the rich and then increase benefits across the board, especially for widows, widowers, and caregivers of dependent family members. Progressives do love a good tax increase!
- 📉 The Conservative Position - Those on the political right think the solution is to reduce benefits for all but the lowest income seniors, raise the retirement age to 70, and avoid higher taxes. This would basically push Social Security more to a need-based welfare program than an earned benefits program. Great for the poor, less so for everyone else!
- 🏢 Taking Stock - Something called “privatization” is the other option. The problem with the current system is that it’s designed to pay out more to those who pay in more and to people who live longer. Wealthy folks pay in more and tend to live longer so they get more benefits. On the other hand, if you compare the benefits from Social Security with the gains from investments in the stock market, the market is far better. Privatization would tap into this and *potentially* reduce the gap between the wealthy and the poor because all would gain with the market. Better Paychecks…and capitalism wins, right?
🔥Bottom line: What you think should be done probably depends on your personal politics, and that’s okay. There are a lot of different ideas, and we need a lively debate about what to do. That’s the main thing - the debate! That’s what America is all about. Normal people and their Paychecks help decide which direction this country goes. ‘Murica!
What do you think should be done about Social Security?
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