Star Parker wrote an excellent piece on Social Security, Social Security Reform Cooking Again. Here’s some telling statistics:
It seemed like such a bright idea 75 years ago, when there were more than 40 individuals working for every retiree, to provide a government retirement stipend financed with a payroll tax. But it doesn’t work quite as well when there are three, on the way to two, working and paying for each retiree — today’s reality.
Tax increases and benefit cuts, with the goal to make the existing Social Security system solvent, would only make a bad deal even worse for every working American.
Wealth doesn’t come from income. It comes from ownership. Investing in personal retirement accounts, rather than paying Social Security taxes, would be a boon for America’s black community. Median financial wealth of black households, excluding home ownership, is about a hundredth that of white households.
Not to mention, in private accounts, what is left over after someone passes could be something to pass onto the next next generations in the family – which could pay for things like education, better homes or a business investment.
Social Security, like many government programs, breeds dependence on politicians. We should encourage independence.