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Showing posts from August, 2012

Government Based Upon Natural Law - (Part 13) - Retirement and Social Security

The History and Future of Social Security

Social Security is a poorly planned system that is not economically sound, and is unfunded.  The current Social Security tax rate is 12.5% and this money is used to pay current retirees; thus none of the Social Security taxes paid by an individual are actually invested for that individual.  This is why it is considered unfunded.  Because of this and because of the aging population that is occurring all over the world, Social Security benefits are becoming an increasingly large inhibitor of economic growth, and are taking up a larger and larger share of federal spending. In 2009, it has been estimated that Social Security and Medicare are underfunded by around $50 trillion.  This means that if the benefits remain the same, and the FICA (Social Security and Medicare) tax rate remains the same, an additional $50 trillion would still be needed.  Any company that had such a retirement program would rightly be prosecuted.
To show how …