I've never heard of anyone who thinks that Social Security is or was
at any time a gold-plated retirement plan. I'm pretty sure no one is
going to be living in the lap of luxury based solely on SS payments.

Social Security doesn't require ridiculous tax increases to pay for
it. Retirement age is already gradually increasing in the program
(that's built in), it doesn't need to be drastically changed. As for
why SS shouldn't be suddenly changed from 66 to, say, 70, there are a
couple of good reasons. Krugman provides one, namely that average life
expectancy is increasing but it is not increasing uniformly for all
groups. There is another good argument, however, which is that older
workers have one of the highest unemployment rates. Companies often
lay off the most expensive workers (ie those with the most seniority)
to reduce costs. Those unemployed workers often have a much more
difficult time finding a new job than workers in their 30s and 40s. By
raising the age at which people can start claiming Social Security
benefits you are increasing pressure on a group with some of the most
difficulties finding jobs. That isn't a good combination.

Cheers,
Judah

On Mon, Aug 16, 2010 at 7:39 PM, Robert Munn <[email protected]> wrote:
>
> My basic issue with Social Security is that it was not intended as
> gold-plated retirement plan. If we just go back to providing benefits
> to people starting at average life expectancy age, the program will
> stay solvent forever and will not require ridiculous tax increases to
> pay for.
>
> On Mon, Aug 16, 2010 at 5:33 PM, Judah McAuley <[email protected]> wrote:
>>
>> An excellent, succinct, analysis by Krugman on the problems and lack
>> there of with the Social Security program.
>>
>> http://www.nytimes.com/2010/08/16/opinion/16krugman.html?_r=2&src=twt&twt=NytimesKrugman
>>
>
> 

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