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Ever notice when con artists are arrested for pyramid schemes, they often
say, "If only they had let us operate for a little longer, everyone would have
gotten their money back?" A few economists and many politicians sound analogous when they say, "If only
we had 20 million more young workers, everyone would get their Social
Security retirement benefits." Meanwhile, we move from 40 workers supporting
each
recipient of retirement benefits to 20 to one to 10 to one to 6 to one to . . .
Will it end when each retiree has his own personal worker supporting his
pension?
Like a rose, a pyramid scheme by any other name is still a pyramid
scheme. So long as retirement benefits for retired workers rely
on current contributions from active workers, Social Security
can only be "saved" by one or more of the following: (a) increasing
payroll taxes, (b) increasing the "normal" retirement age, (c)
increasing earnings of trust fund investments, and/or (d) reducing
retirement benefits.
A few economists argue the solution to this pyramid scheme is to import more
young workers to pay into the Social Security system, i.e., increase
immigration of young workers. Unfortunately, they don't explain where these
imported
young workers are going to find jobs--unless they take jobs from existing U.S.
workers. Nor do they explain how millions of low-paid young dish washers,
lawn mowers, baby sitters, and hotel service workers are going to save Social
Security, especially when many of them are part of the underground economy, i.
e., paying little to nothing in payroll taxes. Increasing population is a
problem, not a solution.
If you know of an organization which emphasizes the connection between
population growth and economic problems, please click on "Contact Us" and
tell
about yourself and about that organization.
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