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S4 on Campus
January 18th 04:51:30 PM
From Jonathan Moore, chapter leader at Indiana State University:
The late economist John Attarian studied the truths about Social Security and the certainty that makes its coming alteration or demise certain. Attarian observed 10 years ago in Reason magazine:
"The brutal truth is that Social Security's prospects are so bleak, and we have evaded reality for so long, that a cheap, painless solution is not possible. Beneficiary or taxpayer suffering is inevitable and necessary. Our first task here is to look reality in the face. That means admitting that you can't get something for nothing."
We need to fix Social Security now once and for all. The program is sound for seniors and for those nearing retirement, but it needs to be fixed for young Americans--our children and grandchildren. As economist Attarian notes, the Social Security program, which taxes taxpayers on a "pay as you go" basis to fund the retirees, their survivors, and America’s disabled citizens, faces an undeniable crisis. Worse yet, any solution taken to solve the problems facing Social Security will not be small and painless. Minor tax increases will not go well, nor will benefit cuts, nor will a combination of the two.
Under the current system, young Americans will pay thousands more in Social Security taxes than they will ever receive in benefits. Someone in their late 20s today will lose about $60,000 under the current system. If you had been able to keep that money, you could buy over 38,000 gallons of gas or one cappuccino every day for 76 years. Instead, that money is lost to the Social Security system.
The problems facing Social Security are hard but a sensible remedy does exist to mend the broken promises made by the current system. Students for Saving Social Security supports giving our generation the choice to create Personal Retirement Accounts. These accounts would allow young Americans to invest their Social Security tax dollars and earn a high rate of interest that will be compounded over the entire person’s life. We must act soon, because the longer we wait to reform the system, the more money we see disappear from our paychecks--never to be seen again.
Posted by Ryan Lynch
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