General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe more children people have, the better shape Social Security will be in.
Social Security contributions are not invested on behalf of beneficiaries. Instead, current receipts (i.e. Social Security taxes) are used to pay current benefits (which is why the system is described as "pay-as-you-go" . In the past the Social Security taxes paid in have exceeded the benefits paid out. The difference has been spent by the Government on other stuff.
One useful way to describe the effect of the change in the aged dependency ratio and the resulting effect on the ratio of beneficiaries to workers is to consider the implied number of workers per beneficiary. For the past 35 years, there have been about 3.3 workers per beneficiary (consistent with the ratio of 30 beneficiaries per 100 workers). After 2030, the ratio will be two workers per beneficiary (consistent with 50 beneficiaries per 100 workers).
With the average worker benefit currently at about $1,000 per month, 3.3 workers would need to contribute about $300 each per month to provide a $1,000 benefit. But after the population age distribution has shifted to have just two workers per beneficiary, each worker would need to contribute $500 to provide the same $1,000 benefit.
...
There is no one clear solution to the problem of increased cost for retirees because of fewer workers available to support the retirees, which in turn is caused by lower birth rates. This issue is not specific to Social Security, but also affects Medicare as well as many other private and public retirement income systems. The decline in birth rates has been far more dramatic in Japan and many European countries that are struggling with the effects of aging populations because of declines in birth rates even more severe than in the United States.
http://www.ssa.gov/policy/docs/ssb/v70n3/v70n3p111.html
I know many here like to be judgmental of people like the Duggars, but those kids will be helping pay for our Social Security when we retire.
randome
(34,845 posts)Take a couple trillion from tax breaks and military expenditures. Problem solved.
sinkingfeeling
(51,454 posts)only the boys will have their own churches with few followers.
Nye Bevan
(25,406 posts)paying for Social Security for our children and grandchildren.
sinkingfeeling
(51,454 posts)welfare. They live about 15 miles away.
Gormy Cuss
(30,884 posts)and expand the workforce that way.
Nye Bevan
(25,406 posts)We should welcome skilled immigrants with open arms.
NYC_SKP
(68,644 posts)Raise the cap. Raise the cap. Raise the cap.
Raise the cap. Raise the cap. Raise the cap.
Raise the cap. Raise the cap. Raise the cap.
Raise the cap. Raise the cap. Raise the cap.Raise the cap. Raise the cap. Raise the cap.Raise the cap. Raise the cap. Raise the cap.Raise the cap. Raise the cap. Raise the cap.Raise the cap. Raise the cap. Raise the cap.Raise the cap. Raise the cap. Raise the cap.Raise the cap. Raise the cap. Raise the cap.
Nye Bevan
(25,406 posts)Eliminate the cap, or increase the cap? Increase it to what level? Noting that increasing the cap on contributions (which happens regularly anyway) also increases the cap on benefits, are you proposing to remove the link between contributions and benefits? Are you happy to see rich people receive hundreds of thousands of dollars a month in Social Security in return for their uncapped contributions?
NYC_SKP
(68,644 posts)Kill the $106,800 cap and collect the 15% for earnings over that amount and you've instantly funded Medicare and Social Security for all.
It's the most regressive setup in the fucking world.
Nye Bevan
(25,406 posts)Are you OK with rich people receiving hundreds of thousands of dollars a month in Social Security payments?
NYC_SKP
(68,644 posts)Why is this a hard thing to imagine or implement?
Nye Bevan
(25,406 posts)The reason the Social Security system still exists in its original form is that everyone pays into it, and everyone benefits from it, and everyone's benefits are tied to their contributions. This applies to the poor, the middle class and the rich. So the system has broad support from people of all income levels. If you start to means-test it, so that upper income people pay into the system but do not benefit from it, you have turned it into a welfare program. And you know what tends to happen to welfare programs. It didn't even take a Republican President to "end welfare as we know it".
Delinking benefits from contributions is probably the sneakiest, quickest way of killing off Social Security.
LiberalFighter
(50,912 posts)Rich people die before they become eligible to receive SS. What they would pay into Social Security stays there.
antigone382
(3,682 posts)There are some folks--who are more knowledgeable than I--who say that our planet can only accommodate one billion people without relying on fossil fuel energy. I can't assert that this is true or false, and I hope that things are a bit more optimistic than that. What is clear is that the population cannot increase indefinitely, and that we are rapidly using resources and generating wastes/pollutants at a rate that will ensure suffering on a massive scale globally. I have yet to see compelling evidence that there is any combination of technology and energy sources that will enable the current population to transition to genuine sustainability, much less a dramatically increased one.
Social security is a construction of human beings; ecology is based on unavoidable natural law. It is clear which of the two must take precedence as we make decisions about the future.
One_Life_To_Give
(6,036 posts)Nye Bevan
(25,406 posts)antigone382
(3,682 posts)We have already lost over half of our top soil. Last year a drought that was almost certainly induced or worsened by climate change led to massive crop failures, and necessitated the premature slaughter of livestock. That increases food prices. Agriculture is one of the biggest users of fossil fuel; the green revolution saved us from mass starvation in the mid-20th century, yet it depends on mechanization and synthetic additives; these things are contributing to climate change, nitrogen pollution, soil depletion, and other problems at a rate that already is generating suffering for millions of people all over the world. People are ALREADY dying because of climate change, and that climate change is inextricably linked to the number of people on the planet and the increasing degree to which they depend upon destructive technologies to survive.
It is nothing more than unethical and antiscientific to call for an increase in the population if you are not *absolutely certain* (not just vaguely hopeful because people were wrong in the past, not just trusting that somehow, some way, technology will prevent the depletion of soil and resources that has brought about the decline of so many other civilizations in the past) that we will have the resources to provide for their material needs in the future.
upaloopa
(11,417 posts)I think you are way off the mark. Just because we have more people doesn't mean we will have jobs for all of them.
Nye Bevan
(25,406 posts)Historically, the term "lump of labour" originated to rebut the idea that reducing the number of hours that employees are allowed to labour during the working day would lead to a reduction in unemployment. The term has also been used to describe the commonly held beliefs that increasing labour productivity and immigration cause unemployment. Whereas some argue that immigrants displace domestic workers, others believe this to be a fallacy, arguing that such a view relies on a belief that the number of jobs in the economy is fixed, whereas in reality immigration increases the size of the economy, thus creating more jobs.[2][3]
As a fallacy, the lump of labour often takes the form of a false premise. In rhetoric it is usually a hidden premise, which makes the conclusion of one's argument a non sequitur. That means that the lump of labour is usually either a subtype of a false premise fallacy, a non-sequitur fallacy, or both.
http://en.wikipedia.org/wiki/Lump_of_labour_fallacy
redqueen
(115,103 posts)Or only certain types of economists?
Of course the number of jobs isn't static, but only a fool would ignore long term trends.
upaloopa
(11,417 posts)Living with their folks. Screw economics. It isn't a science it is opinion.
tabasco
(22,974 posts)Please educate yourself.
Nye Bevan
(25,406 posts)tabasco
(22,974 posts)I am familiar with facts as they exist today.
antigone382
(3,682 posts)Modern scientists with much more refined methods than Malthus are asserting that we are in trouble. It is irresponsible to dismiss them if you are not aware of what knowledge has been gained in the intervening 200 years since Malthus first articulated that we just might have a problem some day.
antigone382
(3,682 posts)Perhaps we should reduce all arguments in favor of increasing the population to the delusions of Nicolae Ceausescu
http://www.ceausescu.org/ceausescu_texts/overplanned_parenthood.htm
"Nicolae Ceausescu loved nothing better than a monument to himself. But his ministerial palaces and avenues paled next to another of his schemes for building socialism: a plan to increase Romania's population from 23 million to 30 million by the year 2000. He began his campaign in 1966 with a decree that virtually made pregnancy a state policy. "The fetus is the property of the entire society," Ceausescu proclaimed. "Anyone who avoids having children is a deserter who abandons the laws of national continuity."
It was one of the late dictator's cruelest commands. At first Romania's birthrate nearly doubled. But poor nutrition and inadequate prenatal care endangered many pregnant women. The country's infant-mortality rate soard to 83 deaths in every 1,000 births (against a Western European average of less than 10 per thousand). About one in 10 babies was born underweight; newborns weighing 1,500 grams (3 pounds, 5 ounces) were classified as miscarriages and denied treatment. Unwanted survivors often ended up in orphanages. "The law only forbade abortion," says Dr. Alexander Floran Anca of Bucharest. "It did nothing to promote life." "
(snip)
The government's enforcement techniques were as bad as the law. Women under the age of 45 were rounded up at their workplaces every one to three months and taken to clinics, where they were examined for signs of pregnancy, often in the presence of government agents - dubbed the "menstrual police" by some Romanians. A pregnant woman who failed to "produce" a baby at the proper time could expect to be summoned for questioning. Women who miscarried were suspected of arranging an abortion. Some doctors resorted for forging statistics. "If a child died in our district, we lost 10 to 25 percent of our salary," says Dr. Geta Stanescu of Bucharest. "But it wasn't our fault: we had no medicine or milk, and the families were poor."
(snip)
Celibacy tax": A woman didn't have to be pregnant to come under scrutiny. In 1986 members of the Communist youth group were sent to quiz citizens about their sex lives. "How often do you have sexual intercourse?" the questionnaire read. "Why have you failed to conceive?" Women who did not have children, even if they could not, paid a "celibacy tax" of up to 10 percent of their monthly salaries.
Gregorian
(23,867 posts)Bravo.
I'm so disgusted with the majority of humans. All we can do is sit and watch. It's maddening to think of how much nicer the world could be if only people were conscious.
RC
(25,592 posts)You know, pay what the job is worth. That and Single Payer, Universal Health Care
GoCubsGo
(32,080 posts)As it stands, only the first $110K of one's wages are subject to FICA taxes.
TheKentuckian
(25,026 posts)which shrinks individual benefits no matter the raw number of workers paying in.
Wages must go up and the cap must be adjusted up, applied to all income, or even scrapped and no I don't care if wealthy folks get larger payouts to do it. They'll get additional returns but they can be set to diminish in relative weight.
Also, don't forget that Ronnie Rayguns and Tip doubled the pay in so we should be either paying for ourselves or covering a significant portion of any shortfall of folks paying in.
Wages being too low and unemployment being too high are big problems that some never want to consider.
Nye Bevan
(25,406 posts)TheKentuckian
(25,026 posts)Neither are resources. Nor is demand a simple multiplier.
Your theory also doesn't account for anything like even current productivity levels or proliferation of automation.
Your thinking is dominated by "supply side" theory here, disregards real world trends, and doesn't account for any future technological advancements (even the ones emerging now).
The need for labor is diminishing, not growing, and the cut of the pie labor gets for its trouble is shrinking far faster.
MadHound
(34,179 posts)More pollution, less food, fewer resources, etc. etc. We've already got far too many people on this planet, adding more is not a good idea.
randome
(34,845 posts)The more competition, the more corners are cut, leading to bribery and political payoffs and degradation of social mores.
America alone would be much better off if we reduced our population by about a third.
IMO.
idwiyo
(5,113 posts)subscribes to this mindset also tells their kids "of course we love you darling but the the REAL reason we had you is because we need someone to pay our pensions when we retire"...
IMNSHO this is one of those totally fucked up reasons to have children some people offer to justify their choice to procreate.
bhikkhu
(10,715 posts)...and its a common fallacy that social security only works with a continually growing population anyway.
Productivity increases work the same as population increases, and we have sufficient levels of productivity right now for social security to work better at our current birthrates than it did 40 years ago.
raccoon
(31,110 posts)treestar
(82,383 posts)So at least world population would not be increased.
Nye Bevan
(25,406 posts)The H1 visa cap should be increased as much as politically possible.
treestar
(82,383 posts)That is what Canada goes for, I recall reading.
We're talking about a generation to pay for Social Security since we didn't have the kids. So they wouldn't necessarily be a problem - we need the population, so do that instead of have more kids.
RB TexLa
(17,003 posts)cali
(114,904 posts)though the day is young.
suggesting that people have children to support Social Security is beyond ridiculous. Suggesting that people like the Duggars are a boon is absurd.
Do try and use some critical thinking skills. How about raising the cap?
Nye Bevan
(25,406 posts)LittleBlue
(10,362 posts)Weird as hell, but whatever. They'll be chipping in when I'm too old.
smirkymonkey
(63,221 posts)we'll do just great. We are on the road to disaster. We don't need more people. We need more well paying jobs.