People retiring today are part of the first generation of workers who have paid more in Social Security taxes during their careers than they will receive in benefits after they retire. It’s a historic shift that will only get worse for future retirees, according to an analysis by The Associated Press.
Previous generations got a much better bargain, mainly because payroll taxes were very low when Social Security was enacted in the 1930s and remained so for decades.
“For the early generations, it was an incredibly good deal,” said Andrew Biggs, a former deputy Social Security commissioner who is now a scholar at the American Enterprise Institute. “The government gave you free money and getting free money is popular.”
If you retired in 1960, you could expect to get back seven times more in benefits than you paid in Social Security taxes, and more if you were a low-income worker, as long you made it to age 78 for men and 81 for women.
More…
http://www.foxnews.com/politics/2012/08/07/new-retirees-receiving-less-in-social-security-than-paid-in-marking-historic/
Jim Sinclair’s Commentary:
This is modest and common in the bankster’s domain.
The first collapse in Western finance was due to OTC derivatives.
The final collapse of this drama will be as a product of FASB’s permitting the valuation of bank paper at any level the bank wishes with no consideration of a market worthiness or viability.
The sin of the OTC derivative is greed without any concept of ethics.
The sin of FASB is weakness in the face of political pressure and the selling out of their souls and purpose to the sociopath devil of Wall Street.
FASB is supposed to be the gatekeeper of transparent and fair auditing.
All major banks’ balance sheets are sick cartoons.
All sovereigns are broke.
QE to Infinity is the only tool capable of kicking this can.
In the final analysis, the can will be kicked.
http://www.jsmineset.com/
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
| 