Social Security Isn’t Broken

[Robbien]

Federal Reserve Chairman Alan Greenspan told Congress earlier this year that everyone knows there’s a Social Security crisis. That’s like saying "everyone knows the earth is flat."

Starting with a faulty premise guarantees reaching the wrong conclusion. The truth is there is no Social Security crisis, but there is a potential crisis in retirement income security and there may be a crisis in the future in U.S. financial markets. It’s this latter crisis that Greenspan actually is worried about.

Social Security is the most successful insurance program ever created. It insures millions of workers against what economists call "longevity risk," the possibility they will live "too long" and not be able to work long enough, or save enough, to provide their own income. Today, about 10% of those over age 65 live in poverty. Without Social Security, that rate would be almost 50%.

Congress expected that private-sector pensions eventually would cover most workers. But pension coverage peaked at 40% in the 1960s. Since then, corporations have systematically dismantled pension systems. Today, only 16% of private-sector workers are covered by defined-benefit pensions. Rather than supplementing private pensions, Social Security has become the primary source of retirement income for almost two-thirds of retirees. Thus, Congress was forced to raise benefit levels in 1972.

http://www.dollarsandsense.org/1104orr.html

[liberal N proud]

1. Education of the poeple and the government is what is needed here.

[Robbien]

2. But with BushCo screaming everyday about saving social security

who is going to hear the quiet financial journals calmly say nothing is broken.

[liberal N proud]

4. It sure won't be the media whores

[Moderator]

3. Great article

but not breaking news

[The Judged]

5. Not broken, pilfered and defrauded by U.S. CEO and SVP's in Congress.

[3rdParty]

6. Not broken...just in a deep coma and on life support...but no feeding tube

[Robbien]

7. No, wrong. Social Security is healthy only BushCo declares it is sick

As the article stated, Corporatists have been delaring social security is bankrupt since 1936.