Tag Archives: retirement

social security and basic reasoning

It appears both republicans and democrats would like to kill social security for those people willing to pay into the system. There is a continual move towards privatization of retirement accounts, while offering minimal retirement plans to people that are near welfare status.

There is a systemic reason why both republicans and democrats are attempting to kill social security for the middle class and above. When older able bodied people choose to retire, the labor supply diminishes. With a diminishing labor supply, the cost of labor goes up.

I doubt it is coincidental that in an era which the age requirement for social security has risen, the labor supply has been relatively abundant as opposed to the era before the age requirement was raised.

 WOW! It’s WebStory!