Bernie Sanders Has An Amazingly Simple Idea To Fix Social Security For The Next 75 Years

[HiPointDem]

32. gee, thanks for the history & finance lesson. not. The way you pay for it is with the increased

productivity & ergo higher wages of every generation.

Gen A has 10 members who produce $10 of value each = $100 & are taxed at 5% = $5.

Gen B has 20 members, $20 of value each = $400 x 5% = $20.

Gen C has 20 members, $30 of value each = $600 x .5% = $30.



Instead, what the Reagan admin did was increase SS taxes on all workers (not just boomers, but on Gen Xers, their parents, & every subsequent generation) to build up a surplus five times bigger than the 1-year cushion the TF historically kept.

Gen A = 10 members paying $5

Gen B = 20 members paying 6.2% = $25 ($5 of which = surplus)

Gen C = 20 paying $37 ($7 of which = surplus)

So $12, or about 11% of collections are borrowed into the general budget.

Interest is paid on the borrowing, increasing federal deficit and taking money away from other programs.

Meanwhile, consumer spending drops 1.2%, consumer borrowing increases to maintain the same living standard, and income taxes on capital are reduced.

Then it comes time to repay and the feds plead poverty: "OOOOh, we're so poor, we need to cut your benefits or raise your SS taxes to cover the difference!"

They reduce benefits or raise SS taxes & workers and retirees lose a second time.

Tell me where the bloody "benefit" in your little scheme is.