CBO’s Long-Term Projections of Labor Force Participation
By Joshua Montes, Xiaotong Niu, and Julie Topoleski. January 13, 2017.
This article outlines one of the underlying assumptions for the CBO’s Social Security projections, and explains one reason why CBO projects a larger long-term funding shortfall than do the Social Security trustees.
Check it out here.
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1 comment:
"CBO projects a lower rate of labor force participation than do the Social Security Trustees. Both CBO and the Trustees expect the overall participation rate to decline significantly from today’s value of 62.8 percent primarily because of the effects of an aging population."
This is a clear case why cash flow accounting is a terrible way to fund retirement or pension programs. by relying on someone else to pay for the benefits of earlier cohorts shifts costs from one generation to the next in a truly unfair way.
We as individuals are responsible for our own well being and future. The government hinders this by attempting to take care of everyone regardless of how badly it performs this task. As a result the cost of Social Security and Medicare today are far greater than the value those paying the costs today will receive in the future when it is their turn to eat at the government trough.
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