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Singles are taking over the nation. For the first time, most American adults aren't married. But fewer marriages mean fewer kids and eventually, fewer taxpayers.
This may be bad news for government sponsored retirement programs. Without reform, economists predict the new singles majority will threaten funding for retiree benefits.
On the other hand, the surge in singles may help save money on welfare programs.
Interesting analysis that many of us may not have thought of.
Quote:
More than 124 million Americans, or 50.2 percent, are single, said economist Edward Yardeni, who analyzed U.S. Bureau of Labor Statistics data in the August jobs report. Singles include never married, widowed and divorced adults over age 16. When the government started gathering such statistics in 1976, 37.4 percent were single. It has been rising since
Quote:
"It's a demographic gridlock," Yardeni said in a phone interview. Boomers will not want to give up their long-awaited benefits. Nor will working-age singles—burdened with record-level student debt—welcome tax hikes.
Incentives for young singles to pay into these retirement programs are low. With older generations drying up the coffers, singles expect little-to-no economic return. "It's dead weight loss. A burden," Yardeni said.
One solution is to welcome more young, tax paying immigrants into the country, Yardeni suggested.
Lots of food for thought especially for the youngest Boomers who are just that younger and hitting retirement in about 17 years at crunch time
Its even worse news for general funded programs. One can read the official report by searching for SS trustee reports to congress. last few years. they warned of it during the Clinton administration and he appoint of committee called the Breaux committee. Of course it was ignored. just as Obama's Erskin/Bowls report was.
I thought the problem would be lack of employed people to support the retired. Don't understand why singles would be a problem as spouse might be able to claim a higher benefit due to marriage and also survivor benefit.
The solution is simple. Europe has faced zero-growth population since I first studied it in grammar school, (late 50's, early 60's), so it is nothing new. To support our welfare state, (which is what we have become), we need to welcome immigrants from other countries. Better if they were legal immigrants, but that's an argument for another thread/forum. We have always been a country of immigrants, and that is what has made our country vibrant and growing.
I thought the problem would be lack of employed people to support the retired. Don't understand why singles would be a problem as spouse might be able to claim a higher benefit due to marriage and also survivor benefit.
Article makes the (often accurate) assumption that single persons will not breed (produce children) and or fewer of them than married couples. Thus such a decline in birth rate will equal eventually fewer younger workers paying into the system to support those already drawing benefits.
Social Security is a Pay As You Go (PAYG) system in that inflows first go towards paying benefits, what remains (a surplus) is either put into a "trust fund" and or can be "invested" (read loaned to the federal government). At some point in the future and exactly when no one is really sure but the number of seniors will vastly out number working adults. Then the fun starts.
As the article notes when funding declines without a corresponding decrease in benefits the shortfall must be made up from somewhere. By law SS Administration can simply reduce the amounts going out (not politically popular). Or Congress can vote increases in payroll taxes (again ditto) on younger workers which is really a direct transfer of their wealth to retirees.
You would think with all the noise about "gay marriage" that the institution was in high demand, but it isn't. In fact marriage rates for middle and lower demographics has been declining for years now. Who is getting married? Many of those in upper middle and above classes.
What is happening and it has been going on already in many parts of Europe is more and more couples "shacking up" as it were. Either by formal civil unions with contracts or just moving in together the more casual relationship is vastly outpacing marriage.
The danger comes in that if future younger demographics do not see any benefit to them from SS they may pull back their ears as a collective group and bite at paying higher rates. This could set off a battle between generations.
The solution is simple. Europe has faced zero-growth population since I first studied it in grammar school, (late 50's, early 60's), so it is nothing new. To support our welfare state, (which is what we have become), we need to welcome immigrants from other countries. Better if they were legal immigrants, but that's an argument for another thread/forum. We have always been a country of immigrants, and that is what has made our country vibrant and growing.
This is one reason why the immigration debate in the USA will likely involve some sort of amnesty at least for the young illegals brought here as children.
As in many Western European nations birth rates in the USA have been slowly declining since the end of the postwar "Baby Boom" in the early 1960's. In fact the past few years it has fallen off a cliff! *LOL*
Immigration both legal and otherwise masked some of the shortfalls but the USA is at a point now where it needs immigrants especially young persons who will hopefully marry and have children.
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