Wisdom from a Fool
By James Hamilton
The Motley Fool's Chuck Saletta said it pretty well earlier today: "The unfortunate reality is that, at its best, Social Security is little more than a safety net to help keep people out of abject destitution. Given the program's shaky financial footing, however, even that is at long-term risk."
Those who say that there's nothing wrong with Social Security that a good tax increase can't fix proudly claim that - even if nothing is done to save Social Security in the coming years - the program still will be able to pay about 70 cents for every dollar promised. That's supposed to make people feel better?!!
Saletta again: "Based on the most recently available data, the average Social Security benefit received by a retiree's family is $1,097.95 per month -- $13,175.40 per year. That's less than a full-time, minimum-wage job in some states."
So - by default - the position of those who oppose modernizing the program is this: Raise payroll taxes (hitting low-income workers the hardest, BTW) to keep a failing system operating exactly like it's done the last 72 years so that retirees can receive less than what minimum wage pays.
Sounds like opponents need to spend some more time thinking this one through.
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