The Social Security system has many flaws, but it could be sustainable and financially sound if the money paid in was enough to support the future liabilities and the politicians could be trusted to keep it separate and not use the money to support the general growth of government.
Maybe any government system that is dependent on honest and responsible politicians is bound to fail.
The Social Security system has many flaws, but it could be sustainable and financially sound if the money paid in was enough to support the future liabilities and the politicians could be trusted to keep it separate and not use the money to support the general growth of government.Not really. There is not a direct link between revenue and benefits. The system is not sustainable as currently structured. If you take a look at how many times payroll taxes have been raised, the pay caps increased every year, raising the retirement age, changing COLA formulae, etc. you will see there is some attempt to keep the system solvent, but the baby boom cohort will overwhelm it if taxes are not raised, benefits reduced, or both.
Contribution and Benefit Base
Social Security Tax Rates