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| National Dialogue |
| General Discussion |
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| National Dialogue |
| General Discussion |
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Author Index |
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The Safety Net - A participant refocused the dialogue on the safety net function of Social Security by asking the privatizers who will take care of the elderly who have not saved enough to support an independent retirement. Are charities or their children to fill the gap? Are the blind the disabled and the retarded to be left to fend for themselves? An abolitionist responded that the government should assume no role in responding to these problems.[Marwan Jabbour-5/6] A means tester responded that his approach was the only fair way to maintain the current system without unduly saddling future generations with extraordinary tax rates.
Debate on Savings - The comparative intergenerational burdens in saving for retirement was discussed; several contributors debated how easy it is or was for seniors, the boomers and generation X to save for retirement outside the Social Security system. A spokesman for the senior's side observed that it was easier for today's generations to save for retirement with IRAs and 401-(k) s than in his day. He pointed out that because these contributions are made with pre-tax dollars, seniors were subsidizing those who utilized those options to save. [Marv Rohrs-5/4] Another participant pointed out that low-income wage earners living from pay check to pay check did not have the money to save and that this problem was compounded by the regressive nature of the payroll tax. Another strong privatizer responded that tax breaks should not be necessary to force people to save- that saving is merely a question of personal priorities. [Bill Larsen-5/5].
Income Levels for Seniors - An issue arose on whether median or mean income figures best characterized the incomes of today's seniors. One participant who argues for both means testing and privatization stated that the mean income for those over 65 exclusive of capital gains was $32,000 a year. Another contributor countered that it was far better analytically to focus on the median income figures and to realize that most seniors were not that wealthy. He concludes that at least 2/3 of the retired make less than 32 K and points out that in 1997 the, median income for elderly unmarried women (widowed, divorced, separated, and never married) was $11,161, compared with $14,769 for elderly unmarried men and $29,278 for elderly married couples. He further points out that widows make up 45% of all beneficiaries and that 25% of unmarried elderly women survive solely on SS benefits. [jamesk51@hotmail.com-5/6]
The Ponzi Scheme - A Fellow of the Society of Actuaries debunked the Ponzi scheme attack on the securities held by the Social Security Trust Funds; he stated that U.S. government bonds are the soundest securities in the world and that to analogize the funds to a Ponzi scheme is false. A frequent participant strongly disagreed labeling US treasury bonds as junk.
Sniping at the Elderly - In responding to this post a Generation Xer agreed that today's retired should not be made the scapegoats for the system's problems. However this participant noted that intergenerational tensions were exacerbated when the vocal minority contend that the reformers are anti the elderly. [Jeremy Kidd -5/6-7] In a companion post in the Why Reform dialogue this participant urges that reform be undertaken now to reduce cultural and intergenerational warfare.
Fraud by Disability Beneficiaries - One participant cited a personal anecdote of a disability beneficiary defrauding the system and suggested that reform should start there. Another contributor responded promptly that a beneficiary's disability status is periodically reviewed and one example is not a sufficient basis to build a case for massive fraud. [For background on this issue see FAQ 7.10]
Barbara Brandon
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