I agree that SS should be completely transformed here, because it's simply unworkable.
However, what "Seguridad Social" means in most Spanish-speaking countries is a total system - not only retirement, but a host of other welfare benefits. This is the same problem European countries (including Spain) are having now, since they don't have enough workers to fund their insanely generous benefits. Panama may have enough workers, but the problem is that the benefits keep growing and the taxes keep rising, so that the productive are forced to be non-productive in order to survive. And I bet, because their system covers even more "benefits," it's even harder for the productive there.
BTW, I say this as a US self-employed person who has had such a huge "self employment tax"(Social Security) liability I have now decided to simply turn down work and reduce my income by about 50% in order to protect myself.
I'm back.
“However, what "Seguridad Social" means in most Spanish-speaking countries is a total system - not only retirement, but a host of other welfare benefits.”
Yes, that’s true. When Panama started its welfare system (in the ‘50s), it went to Mexico to see what they were doing. I don’t know how much was copied from them. Buy anyway, the welfare “benefits” are minimal compared to Europe. There are hospitals under the system; retirement which is very, very low; and they get paid a “thirteenth” month which is paid in three installments. The employer pays the employee two installments and the third goes to the government. Oh yes, the employer also pays ½ of the employee’s social security with the employee paying the other half. After working a year, all employees get a month of vacation. It can be all at once or in increments.
Oh, by the way, I just got a hold of the Sunday newspaper. The various blue collar workers’ unions are going to try and shut down Panama tomorrow for two days in the event you read about this. But it is just the unions and their useful idiots. Everybody else plans to go to work. The President said a few days ago the police are well trained, ready, and will crack skulls (not exactly those last words).
They are going to start “early.” I don’t know what early means. I think of “early” being right after the sun comes up or before. “Early” might mean 11:00 a.m. to others.