Home
>
Political
>
US Social Security - Is President Bush A Robin Hood After All?

US Social Security - Is President Bush A Robin Hood After All?

The Organization for Economic Cooperation and Development issued a report Monday that pointed out that even though the US proposals will yield a system that reaches the poor in a more redistributive way than many other countries, the average pay outs of the government pensions are rather low at around 51% of a retiree's previously earned salary as compared to over 70% in other OECD countries.

Only New Zealand and Ireland outperform the US in reaching its poorest nationals because they have simple flat-rate state pensions. The rather low proposed US pensions payouts will safeguard the wider economy from serious risks that economists have warned of for ages, yet it also shows just how serious the issue of funding pensions has become.

Some people are not quite convinced that all has been done to avert a disaster. IF nothing would be done, the system would prove insolvent by estimated dates between 2018 and 2040, and this would pose considerable dangers for the wider economy. "I believe that 2018 is in fact the time when the difficulties will begin [if nothing is done]. The reason is that the government securities held by the Social Security system are not any kind of actual asset", says George Reisman, an economist professor who issued an article on the subject for the Mises Institute, which subscribes to the Austrian Theory of Economics (www.mises.org)

He adds that government securities as such are not the only investments held by the country's institutional investor base, but pretty much a claim against the US Government to pay money that it does not possess. At a time that a negative gap comes into being, the US government will simply have to raise taxes taxes, borrow more from the public, or inflate the money supply to make ends meet.

"Probably, just as has been the case many times since the system was established seventy years ago, social security payroll taxes will be increased one or more times again between now and 2018, and that will provide the funds", says Reisman.

Yet President Bush opted for as few tax increases as possible. In what is described as a rather Democrat-style move, the US leader has chosen to recast the 70-year-old retirement program under a 'progressive indexation' design. This means that the lowest income earners are not becoming any worse off but that the people with middle and high incomes will suffer a severe setback in income soon after they retire. Talk of the system becoming an 'empty shell' for the better off is resultantly fashionable.

The plans make US Social Security is one of the least generous public pension systems in advanced countries, providing an employee on average earnings a pension after tax of 51 per cent of pre-retirement income, according to a comparative study by the Organisation for Economic Co-operation and Development issued this Monday.

The average employee in an advanced country can expect a government pension of 70 per cent of his or her after-tax earnings at retirement compared with 39 per cent for an equivalent US citizen.

The sustainability of pension systems is a large issue worldwide and countries around the globe are generally drawing up rather similar systems to cope putting the burden with the private sector and with the workers themselves. The OECD says there is more variety in the pay outs and distributions of the systems per country, with improving fiscal sustainability overshadowing the attention they devote to pension adequacy.

Angelique van Engelen is an international writer, specialing in content creation. If you are interested in tailor made articles, content, brochures, features or news, contact her via angeliqueve@contentclix.com

Lincoln Town Car rentals Milwaukee .. Lockport Chicago limo O’Hare

In The News:

Tech expert Kurt “CyberGuy" Knutsson says business email compromise scams are a serious threat, as shown by Teresa W.'s near loss of thousands of dollars.

Big tech coming in 2025 includes solar umbrellas, AI TVs, smart earbuds and crazy robots. Tech expert Kurt “CyberGuy" Knutsson gives his take on the wonders revealed at CES 2025.

Tech expert Kurt “CyberGuy" Knutsson provides two methods to restore your contacts for iPhone and Android devices.

FBI warns that criminals are using generative AI to exploit individuals with deceptive tactics. Kurt “CyberGuy" Knutsson explains their tactics and how to protect yourself from them.

Tech expert Kurt “CyberGuy" Knutsson says hackers are embedding dangerous code in Chrome extensions to steal your data.

Google Maps Location Sharing is now built into Android settings; no need for Maps settings. Tech expert Kurt “CyberGuy" Knutsson discusses the welcome improvement for Android users.

Not all apps out there offer legit virtual private networks, according to Kurt the CyberGuy. He explains how to keep your information safe.

Apple's Image Playground transforms text prompts into images or animations in seconds, brining a world of creativity to the palm of your hand.

NASA's Ingenuity helicopter, which flew on Mars in April 2021, became the first aircraft to achieve powered, controlled flight on a planet other than Earth.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Thieves who have iPhones can usually detect a hidden AirTag in vehicles they are attempting to steal, and an RFID wallet may not help you.

Genmoji, the latest addition to Apple's Apple Intelligence suite, uses artificial intelligence to generate customized emoji based on text descriptions.

It's easy to find yourself swamped in unread emails. Here are a few simple steps to archiving them and clearing out some of your digital clutter.

Keep your retirement plan safe from data brokers selling your personal information. Kurt the CyberGuy explains how to protect yourself and your retirement.

Turo faces scrutiny after tragic incidents involving rented vehicles, raising questions about security measures and regulatory frameworks.

A Chinese company has developed a spherical, 276-pound law enforcement robot that has been chasing down criminals at impressive speeds.

Here are some powerful online sleuthing tricks you can use to check the credibility of a website, see old pictures of places you've lived and even learn more about your neighbors.

Beware scam calls: Avoid unknown numbers and protect your personal information. Tech expert Kurt “CyberGuy" Knutsson talks about the increasingly common scam.

Tech expert Kurt “CyberGuy" Knutsson helps you crush your New Year's goals with these 12 apps to help you stay on track and succeed.

There are many untapped safeguards and tips you can learn to take your Wi-Fi knowledge to the next level, technology expert Kim Komando shares her tricks.

VPNs ensure privacy; antivirus stops malware. Tech expert Kurt “CyberGuy" Knutsson says both are essential for online security.

Tech expert Kurt “CyberGuy" Knutsson cites a new report that says many people still use weak passwords like "123456," risking their accounts.

Tech expert Kurt “CyberGuy" Knutsson says a tech support scam used a fake Windows Defender pop-up, tricking the victim to call and download software.

Tech expert Kurt “CyberGuy" Knutsson reveals ways to restore accidentally deleted text messages on your Android phone.

A new study says outdoor security camera apps are among the biggest collectors of user data, including phone numbers, payment details and precise location.

US Social Security - Is President Bush A Robin Hood After All?

Political