Social Security is in great shape
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Economist
Roger Lowenstein explains in the New York Times:
- Current CBO estimates on future wage growth are pessimistic and thus we should count on it being well funded through 2075.
- A mere 1.89% FICA increase will keep the SSA solvent for 75 years.
- CBO lifespan estimates are overly optimistic and Social Security shortfalls assume medical miracles will radically extend lifespans. In reality, those shortfalls could turn into surpluses if these expected miracles do not occur.
- Nobel Prize winner Paul Krugman proves:
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Economist Dean Baker discusses:
- After 2042 the SSA will be able to pay a higher benefit in today's dollars than they pay now.
Private investing is a bad idea, not just compared to Social Security but as a general rule
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Dean Baker:
- Equity returns in the future cannot sustain past growth, as his chart shows.
- Private investment is terribly inefficient compared to Social Security. ( View Chart)
- Nobel Prize winner Paul Krugman explains that private investment is going to be worse than Social Security in the future. Link
- American Prospect journalist Norma Cohen analyses SSA vs. private investment and finds private investment to be inferior. View the article .
- UC Berkeley professor of economics Brad Delong breaks it down and proves equity returns in the future will be poor compared to past returns. Read the whole thing.
- American Prospect journalist Matt Yglesias is another expert who has concluded future stock returns will be terrible and you should be glad to have your money in Social Security. Full article.
