Code Words and Realities: The "Three-legged stool"

[Walter Hart <tracy.hart@cwix.com>]

"Three-legged stool"

[Meaning]"Three-legged stool" is a code word phrase meaning that current workers shouldn't worry or complain so much about Social Security's projected problems.  It means that current workers should look elsewhere or to themselves to complain.  "Heck, Social Security should only be one-third of your retirement plan anyway. It is your own fault if you end up in poverty at the end of your life, even if Social Security goes belly up."

[Reality] If Social Security was always seen as only one-third of a retirement plan, and it began at only 2% of payroll, that means that a full retirement plan should only cost 6% of payroll.  Why are we paying 10.6% for just the one rotten leg of Social Security?  Increased SS taxes are destroying the American Dream today and preventing current workers from saving for their own retirements. As for employer-funded pensions, HA!  Even if an employer creates a plan, it is the employee who really pays for it in the form of reduced current earnings. But for households of those under age 45, Census Bureau figures show that real median incomes are down today as compared to 1973.  For the same time period, the real median income of households over age 65 has increased 33%. 

Let's go back to 2% of payroll and then we can talk some more about "three-legged stools."


Walter Hart