The Social Security department takes money from young people in order to pay older people their social security. After all the money is paid to the old people, the left over money is marked down in a book and then loaned to other government agencies. There isn't any real money in the social security "surplus". So, when the current youth gets old enough to warrent receiving social security, how's it going to be paid? The options are this: to collect on the loans to other government agencies (unlikely that these agencies will cut costs, taxes that pay for these agencies with rise), or to raise the payroll taxes that currently pay for social security. Either way the future working population is doomed to pay more taxes. You may say, "The companies that pay their workers will end up paying more of the tax, and this will only hurt the big evil corporations." But, these corporations would either have to raise prices or cut wages. So...How is social security a good idea?
2006-12-07
12:37:02
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6 answers
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