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Apr 08

Social Security Continues to Impoverish Seniors: 1 in 3 Will Live in Poverty in Response to the Program

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Social Security is a program that takes money from poor people and transfers it to richer people. To the extent that America is defined by class structure (which can be debated), the poor tend to start working earlier in life, to pay into Social Security (and Medicare) longer, and to die younger. The rich tend to start working at older ages, to work fewer years, and to live longer. Thus Social Security is a massive transfer from the poor to the rich.

Additionally, people change their behavior in response to the program. They save less, invest less, work less safe, and retire earlier.

Now we read that 1 in 3 seniors will be living in poverty in the future. The link is here.

The MSN Money article places most of the blame on employers, who have become less likely to offer retirement benefits. U.S. Corporations now face the world’s highest corporate tax rates and additional burdens from the Obamacare program.