If we fix the economy, we also fix Social Security

[FogerRox]

Widespread job creation means more FICA contributions (think 15 million jobs we're currently down). Remember that every job created that pays under 106k a year means lots more FICA being paid. Real wage increases will also mean more FICA contributions. Like this, Median Individual income is about 26k, if wages grow back to their peak during the Clinton years (nearly 39k) that represents about a 30% increase in FICA paid into the SS trust fund for an individual worker.

One of the SS trustees scenarios say SS will go broke in 2037. Widespread job creation can push back that date to 2050 or even 2055.


Real wage growth on top of lots of jobs can push that date back to 2060+.

The SS trustees report includes 3 scenarios, the low cost scenario says that SS is good thru 2085. It is an extremely unlikely scenario, and GDP growth thru job creation and wage growth cannot get us to 2085 alone, population living longer and productivity also play into getting us to 2085. Good healthcare that makes people live longer actually depletes the trust fund sooner.

A good economy may not get us to the 2085 date, but it will vastly improve Social Securities health, without making any changes to Social Security. Its like a 2 for one special at a store, its a great deal, fixing the economy and fixing Social Security, by creating jobs.

Looking 75 yrs into the future the Social Security gap is a measly 0.6% of GDP. raising the cap can cover most of it, depending on the way its done. But with most economic activity currently benefiting the top .1% of earners and medium and large corporations (see increasing wage disparity) reversing wage disparity can be a large factor in gauging the future health of our working and middles classes as well as Social Security.

Heres Bruce Webbs great blog on the SS CBO scoring

http://www.angrybearblog.com/2010/07/cbo-scores-social-security-policy.html

I'm having trouble loading this page, hopefully you can load it, its really great at explaining the shortfall and the effectiveness of different solutions.

http://2.bp.blogspot.com/_fjW71B3WLTQ/TC3Bs2undtI/AAAAAAAAAYI/PQiTSfBitWo/s1600/CBO-SS+options+Fig+1.jpg

[Demeter]

1. There is no desire to FIX (as in REPAIR) Anything

because as far as the Obscenely Wealthy are concerned, the FIX is already IN!

[FogerRox]

2. LOL, excellent play on words.....

[RC]

3. I wish we would talk Living Wage Jobs and not just jobs.

Living Wage Calculator
http://www.livingwage.geog.psu.edu/

[FogerRox]

9. I did mention real wage increases of 30%

Half the country makes 26k or less, jump that up to 39k, fast enough to keep ahead of inflation......

[jtrockville]

4. If you can pay 90% of your bills, do you consider yourself broke?

Or do you only consider yourself broke when you can't pay ANY of your bills?

Sure you may need to find another (small) source of income to make ends meet, but calling yourself broke when you're mostly solvent seems to be a bogus characterization.

[FogerRox]

11. What if you have no savings?

[OhioChick]

5. K&R n/t

[FogerRox]

10. Thank you.

[kenny blankenship]

6. But what if we don't *want to* fix SocSec? What if we want to clip it, trim it, whittle it down?

So we can "leave our mark" on it, begin the process of privatizing and dismantling it, and win a Gold Star for Centrism and fuck-the-poor "Seriousness"?

[FogerRox]

7. Well then see comment #1.

[defendandprotect]

8. Social Security doesn't need to be fixed ... !!! It runs a huge surplus every year $250 BILLION .

or more -- which is used as a slush fund for wars and tax cuts for rich --

and to make the obscene MIC budget look better!!


Simply do what has always been done -- raise the cap on wages ---


We're in a depression -- let's put people back to work -- and we know how to do that --

MORE SITMULUS -- directly creating jobs -- not the BS of giving business billions in

lucrative contracts!!

[CleanGreenFuture]

12. Social Security does not need to be fixed.