Home
>
Political
>
US Social Security - Is President Bush A Robin Hood After All?

US Social Security - Is President Bush A Robin Hood After All?

The Organization for Economic Cooperation and Development issued a report Monday that pointed out that even though the US proposals will yield a system that reaches the poor in a more redistributive way than many other countries, the average pay outs of the government pensions are rather low at around 51% of a retiree's previously earned salary as compared to over 70% in other OECD countries.

Only New Zealand and Ireland outperform the US in reaching its poorest nationals because they have simple flat-rate state pensions. The rather low proposed US pensions payouts will safeguard the wider economy from serious risks that economists have warned of for ages, yet it also shows just how serious the issue of funding pensions has become.

Some people are not quite convinced that all has been done to avert a disaster. IF nothing would be done, the system would prove insolvent by estimated dates between 2018 and 2040, and this would pose considerable dangers for the wider economy. "I believe that 2018 is in fact the time when the difficulties will begin [if nothing is done]. The reason is that the government securities held by the Social Security system are not any kind of actual asset", says George Reisman, an economist professor who issued an article on the subject for the Mises Institute, which subscribes to the Austrian Theory of Economics (www.mises.org)

He adds that government securities as such are not the only investments held by the country's institutional investor base, but pretty much a claim against the US Government to pay money that it does not possess. At a time that a negative gap comes into being, the US government will simply have to raise taxes taxes, borrow more from the public, or inflate the money supply to make ends meet.

"Probably, just as has been the case many times since the system was established seventy years ago, social security payroll taxes will be increased one or more times again between now and 2018, and that will provide the funds", says Reisman.

Yet President Bush opted for as few tax increases as possible. In what is described as a rather Democrat-style move, the US leader has chosen to recast the 70-year-old retirement program under a 'progressive indexation' design. This means that the lowest income earners are not becoming any worse off but that the people with middle and high incomes will suffer a severe setback in income soon after they retire. Talk of the system becoming an 'empty shell' for the better off is resultantly fashionable.

The plans make US Social Security is one of the least generous public pension systems in advanced countries, providing an employee on average earnings a pension after tax of 51 per cent of pre-retirement income, according to a comparative study by the Organisation for Economic Co-operation and Development issued this Monday.

The average employee in an advanced country can expect a government pension of 70 per cent of his or her after-tax earnings at retirement compared with 39 per cent for an equivalent US citizen.

The sustainability of pension systems is a large issue worldwide and countries around the globe are generally drawing up rather similar systems to cope putting the burden with the private sector and with the workers themselves. The OECD says there is more variety in the pay outs and distributions of the systems per country, with improving fiscal sustainability overshadowing the attention they devote to pension adequacy.

Angelique van Engelen is an international writer, specialing in content creation. If you are interested in tailor made articles, content, brochures, features or news, contact her via angeliqueve@contentclix.com

licensed cleaning services Park Ridge ..

In The News:

Chrome extension spyware disguised as a free VPN service highlights security risks after it captured private browsing data from trusted sites.

New research shows how fatty acids in cooking oil can safely dissolve and recover silver from circuit boards without harmful chemicals or environmental damage.

The Fox News AI newsletter gives you information on the latest AI technology advancements, and about the challenges and opportunities AI presents now and for the future.

Anthropic investigates alarming AI abuse case where hacker automated entire cybercrime campaign using Claude, stealing sensitive data from defense and healthcare firms.

TikTok, Meta and YouTube restrict Charlie Kirk shooting videos with age gates and warnings while X faces criticism for allowing continued circulation.

Cybercriminals use fake troubleshooting websites to trick Mac users into running terminal commands that install Shamos malware through ClickFix tactics.

San Francisco startup Fable launches Showrunner, an AI platform dubbed the 'Netflix of AI' that generates animated episodes from text descriptions with Amazon support.

Apple raised iPhone prices for some models despite receiving tariff relief from President Donald Trump, with the new lineup starting at $799 for the base model.

A two-story 3D concrete printed home in Western Australia demonstrates faster construction methods that could reshape American housing amid rising costs.

Credit scores remain important during retirement for insurance rates and housing applications, while seniors become prime targets for identity theft and financial scams.

Scammers now send unexpected packages with QR codes that redirect victims to fraudulent websites or download malicious software to steal sensitive information.

Meeting AI tools record private conversations alongside work discussions, creating privacy risks that can be managed with proper settings and awareness.

Hotel privacy concerns are valid but rare, with methods to detect hidden tech using smartphone flashlights, mirror tests and scanning apps.

Improve your Wi-Fi speed and reliability with 10 simple router optimization tips that don't require special apps or expensive subscriptions.

A Columbia University breach exposed names, Social Security numbers and academic records of nearly 869,000 people, with notifications beginning in August.

Rental car drivers use AI-powered apps like Proofr to protect themselves from unfair damage fees as major companies deploy automated inspection tools.

Fox News' AI newsletter brings you the latest on technology advancements around artificial intelligence.

OnTrac data breach between April 13-15, 2025, exposed personal information of over 40,000 people including Social Security numbers and medical records.

A woman named Wika announces her engagement to an AI chatbot sparking worldwide debate about virtual relationships and technology.

The notorious people search site National Public Data relaunches despite a previous breach affecting 3 billion individuals, raising fresh privacy concerns.

Revolutionary TRAUMAGEL gel controls life-threatening bleeding from gunshot wounds and traumatic injuries, helping first responders prevent prehospital deaths.

Protect your home network by enabling proper encryption, creating strong passwords, checking connected devices and using VPN and antivirus software.

The Navy's solar-powered Skydweller drone flew nonstop for 73 hours in Mississippi, proving renewable energy can power long-endurance military missions.

Moving and downsizing expose seniors to identity theft and scams as data brokers collect real estate records and personal information to sell to criminals.

ShengShu's Vidar technology revolutionizes humanoid robot training by using AI-generated synthetic video, reducing required training data from hours to just 20 minutes.

US Social Security - Is President Bush A Robin Hood After All?

Political