tag:blogger.com,1999:blog-7334408760351487944.post5446012113417257344..comments2023-11-12T06:43:00.060-05:00Comments on Notes on Social Security Reform: AARP: Social Security: 10 Facts that MatterAndrew G. Biggshttp://www.blogger.com/profile/16617460431856611873noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7334408760351487944.post-68185554720496754492009-05-08T11:17:00.000-04:002009-05-08T11:17:00.000-04:00Historically, when SS was being created, initial p...Historically, when SS was being created, initial political opposition from businesses quickly vanished when the business community realized it could substitute SS for the pensions they were providing on very favorable terms (since the payroll tax then was so low).<br /><br />To this day, many businesses "integrate" SS benefits into their defined benefits pension plans, to help provide lower-level benefits.<br /><br />So clearly, to some extent at least, SS reduced and replaced corporate pensions.JGhttps://www.blogger.com/profile/11164150812219689611noreply@blogger.comtag:blogger.com,1999:blog-7334408760351487944.post-13198787607488084402009-05-07T20:19:00.000-04:002009-05-07T20:19:00.000-04:00Steve,
It's possible you're right, but it's also ...Steve,<br /><br />It's possible you're right, but it's also possible that the low saving rate today is the RESULT of Social Security and Medicare benefits, which displace private saving. For example,see this paper: http://ideas.repec.org/p/nbr/nberwo/5571.html<br /><br />AndrewAndrew G. Biggshttps://www.blogger.com/profile/16617460431856611873noreply@blogger.comtag:blogger.com,1999:blog-7334408760351487944.post-28290614278998888142009-05-07T20:04:00.000-04:002009-05-07T20:04:00.000-04:00"workers would presumably save a good portion of w..."workers would presumably save a good portion of what they'd otherwise have put into Social Security and could use those funds in retirement"<br /><br />Given the very low to nonexistent savings rate in the US, this is a pretty shaky assumption. I doubt very much that money not taken out for Social Security tax would have been saved for retirement.h00perhttps://www.blogger.com/profile/03417174625573886847noreply@blogger.com