Tag: Social Security finances
Abstract The rising cost of employer contributions to employee-sponsored health insurance (ESHI) can slow wage growth and erode the Social Security wage base. Both these effects were evident in the decades before 2005, as ESHI increased as a share of compensation. Fortunately, the ratio of ESHI contributions to compensation plateaued after 2005, stabilizing wages and…
There is a backstop, but it’s a draconian one. When the horse-trading begins on a package to restore financial balance to the Social Security program, one item that should be considered is some form of automatic adjustment mechanism. While the financial implications of the ultimate package will be based on the best assumptions regarding wages,…
