Quote:
Originally Posted by retiredguy123
If you do the same calculation using the lowest income level, you will find that the Social Security benefits would greatly exceed the investment potential for the individual. That is because the Social Security system is a wealth transfer system, and it was never designed to benefit all participants equally.
|
CHARITY is a "wealth transfer system". So, you could look at SS as the government ensuring that the wealthy become more CHARITABLE than they otherwise might be on their own. Someone might call the progressive tax system (where the rich pay a greater % than the poor) .......might call that a "wealth transfer system". I call it a way to create a BETTER, more stable COUNTRY with a HEART and a Soul. A soul-less country would always say, "let them eat cake".
.......Also, after about 1980 the US tax system has become less progressive and more like a FLAT tax, which benefits the HAVES v the have-NOTS. New Federal programs like the IRAs and the Affordable Care Act (which is #1 in Fl) HAD to be created to avoid masses of people starving and wandering around the streets. These were attempts at the US having......"a heart and soul".
.......And watch what happens if the prediction of a deep recession materializes. Guess who buys up the IN-default homes?