Tag: legacy costs
The brief’s key findings are: As policymakers consider restoring balance to Social Security, understanding the reason for the shortfall is important. Specifically, the program’s “pay-as-you-go” approach, which dates back to the late 1930s, makes it expensive relative to a funded system. Paying full benefits to Depression-era workers meant forgoing the opportunity to accumulate more revenu…
It’s important to get the Galveston story straight, so it can be put to rest. Most importantly, comparing Social Security to Galveston is comparing apples to oranges. Social Security payroll tax rates cover not only the cost of current benefits but also the program’s legacy costs. The legacy costs exist because benefits were paid to…