Is Social Security a forced retirement program?
A couple days ago , Senator Ron Johnson (R-WI) called Social Security a 'forced retirement program' and said workers' payroll contributions should be gambled on Wall Street. My senator, Sheldon Whitehouse (D-RI) proposed adjusting the payroll wage cap so that people making over $400K per year begin paying their fair share — a "win-win." Let’s take each of these in turn: 1. No, Social Security is *not* a retirement program. It is retirement insurance. Retirement programs include such things as 403b and 403c plans, 401k plans, IRAs and personal savings. In all these plans, money is invested in the name of the person to become available to that person upon retirement. There is no personal Social Security account for each worker. Social Security is a pay-go program, where current workers are paying the benefits of current retirees (pace the Trust Fund). For many Americans, Social Security is the only thing keeping them from living under a bridge eating cat food. Yes,...