If we want higher cash retirements at an earlier age, we would need unions (as in Germany) but that will come at the cost of 10%, not 5% unemployment.

Feb.28, 2008 in Investment Opinions, U.S Hot Stocks

If we want to continue Medicare (the real culprit in the future stability of the SS system), unless people begin to die younger and quicker, we can anticipate at least of a doubling of its costs over the next five years. If we want to send half of all high school grads to college so our workforce remains the most productive in the world, states like TN and FL MUST adopt an income tax and CA MUST repeal Prop 13 and Oregon, Measure 5. There is no free lunch.
Also, those who complain now about their perception that SS is “ripping them off” forget that half their benefits paid in came from their employers. The company gets nothing for its contribution, and the lost profit could have gone to increase productivity and thus raise living standards for all.
Further, Americans are encouraged to work longer because a) we live longer, and, frankly, retirement is boring compared to work (and I am on SSDI but work a few hours a week for just this reason) and b) we are extremely productive workers and the loss of a skilled, competent employee can cost an employer $50,000 to replace, if there is someone available to be hired (in the case of nursing, a retired nurse cannot be replaced at any price, as there is a net shortage, so hospitals are doing everything possible to keep older nurses working — or when you go to the hospital, as is the case in many nations, you’re family members can provide you with nursing care.)
And last, SS was NEVER intended to be the sole source of income for those who retire. It was to make up about 1/3rd of expected living costs. Americans, rather than spending more than they make, should try saving for a change. And just maybe, as in such countries as Japan, families might consider taking some responsibility for supporting those who supported them for so many years. We’d all like to move to Florida, but just maybe we should consider staying in Altoona with our children and grand children and build REAL families.

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