Question on Safety Net

[Bob Carlitz <bob@giotto.info-ren.org>]

To wrap up our discussion on values, I would like to revisit
a few of the more issues that have come up in the discussion.
Unlike our first time around, where a minority of the
registrants posted their views at some length, I would like
in closing to solicit the broadest possible participation
from our audience.  Today, and for the rest of the week, I'll
ask one question a day.  Please take a few minutes to express
your views on these topics.

Today's question deals with the "Safety Net."  Many people in
our discussion have stated their desire to provide a safety net
for the low-income elderly.  How important do you think this
is, and how should such provisions be implemented?

If you would like to read further on this topic before
responding, we can provide a few points of departure:

1- Bob Myers, in an April 30 posting, pointed out that the present
Social Security system provides low income workers with "floor of
economic protection." This is accomplished through a redistributive
benefit formula that results in lower income workers receiving
relatively larger benefits than higher income workers have:  "With
Social Security, only about 10 percent of persons have incomes
below the poverty level, and about half of them receive safety-net
payments through public assistance.  Without Social Security, about
50 percent of persons would have incomes below the poverty level,
and most of them would need safety-net payments through public
assistance."

2- Despite the positive economic growth over the last several
years, significant economic disparities persist.  Raw data on income
distribution may be found at the Census Bureau's site
http://www.census.gov/hhes/www/mednhhldincome.html.

3- One analysis of this type of data is provided by The Heritage
Foundation in "Feeling the Pinch: Why Income Gains Remain Elusive
for Many American Families,"
http://www.heritage.org/library/categories/regulation/fyi121.html.

4- An analysis from a different political perspective is offered
by The Economic Policy Institute in its recent book, "The State Of
Working America." An Executive Summary of this report can be found
at the web site http://www.epinet.org/.

If you accept these economic trends, what impact do they have on
your views for reform and the type of income security that should
be provided for workers in their retirement years? If you do not
accept the figures or interpretations offered above, please feel
free to challenge them as well.

Bob Carlitz, moderator 
Information Renaissance