Quote:
Originally Posted by Crossfire600
... we can't make our old commitments to worker pensions now let alone the new commitments.
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Quote:
Originally Posted by Finn_Jarber
Maybe the Congress is not willing to force companies to spend the extra money. They'd probably drop pensions altogether, and made things even worse. Actually that's exactly what my former employer did.
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The original scheme was fine.
1] employer-based plan; plus
2] personal plan; plus
3] Social Security to partially insure the first two.
Look, things change. The US has changed; the World has changed; even the nature of employment has changed.
You need to adapt to those changes, because your present scheme is no longer viable.
7
9% of businesses are self-employed, according to the US Census Bureau.
There were 27,281,452 businesses in the US...
and 21,351,320 businesses have no employees.
That means there are only 5,930,132 businesses that have employees.
Out of those, 5,294,970 or 89% have less than 20 employees. 98% of all businesses have 99 employees or less.
Another way of viewing it is that about 20% of your work-force is self-employed.
The days of the larger employers are long gone, and the evolution of business now will result in smaller employers.
You need to re-invent the employer-based option, or find an alternative.
You need to help with the personal plans. A certain element of your society doesn't want you to save money. They want you to give that money you would have saved to them. You gave them control of Congress and they have done a good job of making sure you spend every penny.
If it would be up to me, people would have to report credit card balances as income and pay taxes on it, and/or pay an equivalent amount of credit card interest as taxes.
The arguments against savings are that it causes job losses, but you're going to lose jobs anyway.
You can be punched in the face and handed a snow-cone, or be punched in the face and kicked to the curb.
Social Security as retirement insurance needs to be returned to the States where it originated.
Quote:
Originally Posted by Finn_Jarber
And your solution is a tax hike.
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There are no alternatives.
The Social Security Cap nonsense has been repeatedly debunked and mathematically proven impossible.
Best case scenario with 100% of things going your way 100% of the time, you'll collect enough to fund 4 weeks. You still need to come up with money to fund the other 48 weeks.
In reality, you'll only collect enough to fund 2 weeks, leaving 50 weeks unfunded.
Either raise taxes or cut benefits, but make no mistake about it, that money is coming out of your economy one way or another.
Committing...
Mircea
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