I have thought for some time that there needs to be changes in Social Security. I think the age should be raised, probably to 69, with lower ages for folks whose jobs are so physical that they can’t be expected to continue them that late in life. However, I’m not sure how you would actually implement that. One reason for the higher age is that in the future we may need those workers as population growth decreases. After baby boomers retire, we may have a worker shortage. The other changes I’d like to see are a higher cap on income subject to FICA taxes and means testing. But I’d also like to see higher benefits for some. Social security payments are insufficient when that’s all a retiree has.
But the conventional wisdom—or more precisely, media coverage—about the fate of Social Security may be all wrong. The fact is, Social Security holds U.S. bonds that are the U.S. government is no more likely to default on than they would China’s.
Reuter’s Mark Miller explains it all.
(h/t Remapping Debate)
(Cross posted on News Commonsense)