Sunday, June 30, 2013

Social Security

Social Security is not difficult to understand. There is not and never has been a Social Security Account where our Social Security taxes are held until we retire. The money used to pay each person receiving a check from Social Security is provided by contributions of today’s workers. With the exception of the first year of this program, that is the way it has always worked.

Today’s workers pay social security taxes that are used to pay today’s retirees. So why is there a crisis? There are several reasons, but it still boils down to fewer workers and more people receiving Social Security checks. Today, it takes three workers to support one person receiving a Social Security check.

Each year we have fewer babies in America and as generations pass, there are fewer workers. Between 1973 and 2011 there were 54,559,615 abortions in the United States and birth control further reduced our birth rate. Americans had fewer babies in 2011 than in any year before, according to an annual summary of vital statistics.

The problems caused by low birth rates are not limited to Social Security. Many retirees will not pay very much in the form of income tax and they will be such a strong voting block that politicians may grant them many tax-savings.

More workers can be solved by higher birth rates or more young immigrants that tend to have large families. Our choices are simple. Have more children or increase the number of immigrants from groups that are likely to have more children.

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