7 Facts Biden Ignored About Social Security in His Speech to Florida Retirees
Rachel Greszler / November 02, 2022
- Rachel Greszler is a research fellow in economics, budget, and entitlements in the Grover M. Hermann Center for the Federal Budget, of the Institute for Economic Freedom, at The Heritage Foundation. Read her research.
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Social Security is a bad deal for current and future workers. Social Security may have been a good deal for Biden’s generation, but it’s not a good deal for current and future workers. A Heritage Foundation analysis showed that the average younger worker could receive nearly three times as much as Social Security can provide if they were instead able to save Social Security taxes in their own retirement accounts. (The Daily Signal is the news outlet of The Heritage Foundation.) Even low-wage workers making about $20,000 a year could have 40% larger incomes in retirement as a result of saving on their own. And personal savings can be passed on to family members or friends, something that’s especially important for lower-income Americans, who are less likely to be able to save outside of Social Security and also for individuals with shorter life expectancies. One in five black men will die between the ages of 45 and 65, meaning they will pay tens or even hundreds of thousands of dollars into Social Security and could get little or nothing in return.
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It’s often been asserted and proved that Social Security is a racist program that transfers wealth from poor minority men to rich white women.
If for no other reason, it needs to be eliminated. I’m sure the financial gurus can transform the unfunded liabilities fairly. Yes, it will be painful and not pretty. I can foresee the under 40 participants getting a 25+ year bonds for their “benefit”. The 40 to 67 get a similar but non-transferable bond ladder. Current recipients will have to be paid out of the current budget. It’s going to require pain, but it’s better than future financial disaster when all the politicians and bureaucrats who created the mess are long dead.