Consensus is wrong on Social Security fix - Raising the retirement age isn't as wise as it sounds.

[FLAprogressive]

Consensus is wrong on Social Security fix
Raising the retirement age isn't as wise as it sounds.

By Theodore R. Marmor

and Jerry L. Mashaw

An old adage says that every problem has an obvious solution that is both simple and wrong. We fear this applies to the idea of increasing the formal retirement age for Social Security.

*snip*

Social Security pensions are crucial to most low- and middle-income Americans' retirement income. Two-thirds of retirees get half or more of their retirement income from the program, and one-third are almost totally dependent on it. The average yearly benefit is only $14,000, so any reduction causes real pain in the lives of retirees whose working incomes were in the low to medium range.

*snip*

In short, adequate retirement income for average Americans is already in jeopardy. And this is in an era marked by declining employer pensions and radically reduced real estate values.

Moreover, low and medium earners are least likely to have benefited from the health advances that make raising the full retirement age seem like such an obvious solution. Over the past 25 years, life expectancy for upper-income men has increased by a whopping five years. Men in the lower half of the income distribution, however, have seen their life expectancy increase by only one year. And for lower-income women, it has actually declined. Not all Americans are leading longer, healthier lives, and those who aren't depend on Social Security the most.

*snip*

In short, this obvious, simple solution to Social Security's relatively modest long-term financing problems turns out to be, if not wrong, not nearly as right as it appears. There is much pain and only modest gain from further raising Social Security's retirement age. Ordinary Americans, who overwhelmingly oppose the idea, seem to understand that better than our opinion leaders.

Read more: http://www.philly.com/philly/opinion/inquirer/20110531_Consensus_is_wrong_on_Social_Security_fix.html

[eridani]

1. Whatchu mean "consensus" kemosabe?

The consensus of the general public has always been that this idea sucks syphilitic green monkey dicks.

[FLAprogressive]

2. I think they're talking about the Beltway consensus

[eridani]

3. Yathink? Where are the tumbrils when we really need them? n/t

[Hubert Flottz]

4. Golden Years Your Ass!

K&R

[Ineeda]

5. I haven't heard much lately about raising the cap

instead of the age. Has that idea been completely dropped? That's a no-brainer, IMO.

[Warren Stupidity]

6. That would be the Clown Consensus

regular people think that raising the retirement age is bullshit.

I've got an idea: end the tax cuts for billionaires, reduce military spending by 50%, invest in a massive green energy infrastructure program, end the cap on fica payments, extend medicare to everyone.

That would be the Non-Clown Consensus.

[The Magistrate]

7. Hear Hear, Sir!