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Economic Introduction to Social Security: Modifications for Sustainability

Economic Introduction to Social Security: Modifications for Sustainability. by doug Shapiro www.spolitomics.com spolitomics@gmail.com Please Cite As: Spolitomics . “Economic Introduction to Social Security [ Powerpoint ]" Douglas Shapiro. www.spolitomics.com. Brief History.

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Economic Introduction to Social Security: Modifications for Sustainability

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  1. Economic Introduction to Social Security:Modifications for Sustainability by doug Shapiro www.spolitomics.com spolitomics@gmail.com Please Cite As: Spolitomics. “Economic Introduction to Social Security [Powerpoint]" Douglas Shapiro. www.spolitomics.com

  2. Brief History Signed in 1935 by Roosevelt during Great Depression Officially named Old-Age, Survivors, and Disability Insurance [OASDI] Preceded UN General Assembly 1948 signing of the Universal Declaration of Human Rights which defined social security differently

  3. Big Picture Facts 2021 – Social Security Trust Fund is expected to run a surplus until this year. 2033 – Trust Fund is expected to be exhausted. Currently 20.8% of federal expenditures (will soon be eclipsed by Medicaid and Medicare) Keeps about 40% of beneficiaries 65 or older out of poverty

  4. Sustainability? Barring huge changes in demographers due to increased Total Fertility Rate, Social Security is unsustainable in long-term. Must Increase Revenues and/or Decrease Benefits

  5. Increase Revenues Raise the maximum amount of earnings subject to Social Security tax over the current $110,000 Increase taxes on Social Security benefits themselves. Allow Social Security to invest in assets other than non-negotiable Treasuries which over long-run will increase investment returns

  6. Decrease Benefits Means-test high-net worth individuals out of eligibility Increase the retirement age to claim benefits Reduce cost of living adjustments

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