the video claimed that calls for raising the retirement age were indicative of some kind of Koch Buy Off Conspiracy. At that point I was laughing too hard to pay attention, and stopped watching.
Originally Posted by justabubba
that's correct. although it remains an excellent idea - we would like some way for benefits to remain high enough to help our poorer retirees, but we have no option but to cut future expenditures. latching contributions to a growth engine is an excellent way to accomplish both those goals.
Bowles did NOT advocate investing the social security reserves in the stock market
even the AARP is now admitting that popping the cap doesn't pay for Social Security. since benefits are linked to inputs, all you are doing is increasing Social Security's future liability. You would need to means-test the payout structure in order to make this even beneficial, and it still wouldn't be nearly enough.
the only change required to the social security program to continue its solvency is the elimination of the cap on social security contributions such that high earners are compelled to pay on their entire wage, just as low wage earners are that regressive tax policy needs to be ended
For the most part
, the Trustees’ reports [of 2011] are reruns of last year. First, let’s look at Social Security. Actuaries estimate that the unfunded liabilities of Social Security are $17.9 trillion. This means that the government would need to have $17.9 trillion in the bank, today, earning interest at the government borrowing rate in order to fund these programs into the infinite horizon. Oh, but lest I mention there is a $2.6 trillion trust fund that will take care of part of it this liability. Oh, really? Contrary to the mantra that this trust fund will be around until 2037, for all intents and purposes, that ship has sailed. The trust fund money is nothing more than IOUs written to the Treasury while the money has been borrowed and spent on other programs. Technically, this money belongs in the net unfunded liability column, bringing the total unfunded liability into the infinite horizon to $20.5 trillion....
we don't have 20 Trillion. we have negative 14.5 trillion. the real debt that the US owes - which includes her unfunded liabilities - is larger than the GDP of every nation on earth combined. we have literally promised to give ourselves more wealth than the total production of humankind. "popping the cap" on the payroll tax isn't going to fix that.