Social Security’s board of trustees just released its annual report on the health of the trust fund. The report shows that Social Security’s surplus is $2.8 trillion and growing, and that less than one penny on every dollar is being spent on administrative costs.
Yet Wall Street billionaires and Republicans in Congress will distort today’s report and renew their calls to dismantle our Social Security system brick by brick. They think Social Security’s average annual benefit of just $14,375 is too generous.
And all this success has been built on the pathetically low, pathetically slowly incrementing income basis of $118,500. This means everyone who earns over $118,500 per year is only paying into Social Security the same dollar amount as those earning $118,500. So as incomes rise, the percentage of withholding decreases. If we fix this, and require everyone to pay the same percentage of income, Social Security will have such a big surplus that Social Security awards safely can be increased quite a bit. Among other things, this would also help the economy, as award recipients tend to spend most or all of what they receive each month. The virtuous cycle would receive a big boost.
The 0.01% don’t want to do this, though, because organized labor is not yet completely dead, and their project to undermine academia and science so that people are no longer learning how to think and make use of history is not complete either. If people are able to think and make use of history, then there remains a threat that the labor revolution of the previous century could be repeated.