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Social Security is a pension system very much like any other pension system. It is currently actuarially sound. Like all pension system it assumes a certain p
by yequalsx 16y ago
Social Security is a pension system very much like any other pension system. It is currently actuarially sound. Like all pension system it assumes a certain percentage growth per year and part of the pension payout a person receives will come from such growth. It is not a redistribution scheme. It's a pension system. It is well funded in an actuary sense. It is not properly a government expenditure and therefore is not counted in the discretionary fund.
You may count it as a government expenditure and count payouts from this pension system as a government expenditure but this is contrary to how this is normally considered.
- hnal943 16y agoVirtually every private pension system in the United States has been stopped for the reason that they are not actuarially sound. The reason for this is that population is not growing steadily as the model predicts. The baby boom was an anomaly that will wreck the system. The major reason that US car companies struggled so much over the last decade is that they are saddled with pensions that foreign car manufacturers are not (e.g. Toyota). They sold as many cars, but their profit per car was less because of pension obligations to workers no longer producing for the company.