The Social Security system turns 73 this month. The Providence Journal carried an editorial this morning about Social Security. The editorial points out…in addition to the $10 trillion-plus shortfall…that the program creates no wealth. It merely pays current obligations with our withheld income.
Because it is a politically managed system, the government can change how much it withholds (it has increased payroll taxes 17 times since 1935), how it pays benefits, who benefits… As the editorial writer says, the only thing you can count on is that it is a massive drain on the earnings from your work.
The writer makes the very interesting observation that, in order to ensure a ‘retirement’ for everyone, we are depriving young workers of their ability -and freedom- to plan their own futures.
He believes Social Security is morally irredeemable.