Good article. The wealthy keep letting it happen because the people vote for billionaires to make the decisions in Congress and the White House. And starving the working class at their own gain is what they continually do.
Yes, the cap on earnings should be removed, but another factor is the fact that wages have not kept up with the cost of living. Just imagine if minimum wage had gone up every year. That would have increased what was paid into the system over several decades.
Michelle, I appreciate the 2 scenarios but if you use the formula for today which you said is 290 times the average employee it is way more shocking. The scenarios you used were only 10 and 20 times the average employees wage. If each employee made 50K then the CEO made 290 times that or $14,5000,000. Company paid out 15 million in salary or wages.
At average of 100K wages per employee then the CEO "earned" 100K times 290 or $29,000,000. Company paid 30 million in wages and salary. Amounts flowing into social security still the same as you calculated for both scenarios.
It never was meant to be a ponzi scheme but I think we both know which side of the aisle has happily and boastfully turned it into such a thing. The 176,000 cap could be changed by Congress any time they want to try to negotiate it. Guess who will never be in favor of it? That is some real doom and gloom! The cap on paying into the system is what has ruined it.
Very true, and good point. I wanted to make the math as easy as possible not just for me but for casual readers. But yes, the bigger numbers are FAR MORE compelling. If I rewrote this, I think I’d have included my easy-to-grasp scenario and then added yours to really pound the point.
How did I not know this?! How is this fair?! It's bad enough to have accepted Social Security won't exist by the time I need it (which is so much sooner than I'm comfortable with now) but this is too much. And it's not like I never read about these issues. But I still hadn't understood this. So this is worrisome.
I was wondering how self-employed Americans managed their Social Security contributions. Eek, now I know.
BTW Canada's Canada Pension program has an asset bank of $714 billion CAD (2024), which is considered adequate to fund the CPP for the next 75 years. By 2048 the CPP asset fund is estimated to reach $3 trillion CAD. Canadians pay into CPP just as Americans pay into Social Security. Our percentage is similar and income-based. Employers pay into it as well, matching the contributions of employees. In 2023, the total contributions to CPP were $55.3 billion - for ONE fiscal year. Canada only has 40 million people... and those who are retired no longer put money into CPP. You can see why almost no Canadians want to join the United States, just one of many reasons.
The 1% aren’t just letting Social Security fail, they’re making it happen. They’ve been trying to kill it from day one.
Thank you both for the math and the clarity!
My junior high math teacher would be shocked that I pulled it off. :)
It’s good to keep surprising people!
Thanks for your ongoing work. Grateful for your energy. Lots to do together, isn’t there?
Good article. The wealthy keep letting it happen because the people vote for billionaires to make the decisions in Congress and the White House. And starving the working class at their own gain is what they continually do.
Excellent description of the changes unfair distribution of productivity gains in the last 50+ years have caused to Social Security intake!
Les miserables may hit our streets yet for economic justice----as Emma Goldman said a century ago:
"The organized violence at the top CREATES the DISORGANIZED violence at the bottom."
thanks
I've never heard it like that before, gotta feeling it just might.
Thanks Terry
thanks Carol
Yes, the cap on earnings should be removed, but another factor is the fact that wages have not kept up with the cost of living. Just imagine if minimum wage had gone up every year. That would have increased what was paid into the system over several decades.
That’s one of my main points, of course.
When Marie Antoinette said let them eat cake, she was offering the black caked on grease detrius in the oven.
Not ever a birthday cake, just a death one.
There's no income cap on who can collect Social Security though, correct? I mean the traditional retirement savings system.
Correct, although there’s a limit on what you receive. It’s a bit over $4K per month. (I will probably get about a grand each month.)
This makes me want to spit tacks. Probably I'll end up spitting teeth from all the grinding due to seething.
Wow that's all hopefully it's be a little more.
Michelle, I appreciate the 2 scenarios but if you use the formula for today which you said is 290 times the average employee it is way more shocking. The scenarios you used were only 10 and 20 times the average employees wage. If each employee made 50K then the CEO made 290 times that or $14,5000,000. Company paid out 15 million in salary or wages.
At average of 100K wages per employee then the CEO "earned" 100K times 290 or $29,000,000. Company paid 30 million in wages and salary. Amounts flowing into social security still the same as you calculated for both scenarios.
It never was meant to be a ponzi scheme but I think we both know which side of the aisle has happily and boastfully turned it into such a thing. The 176,000 cap could be changed by Congress any time they want to try to negotiate it. Guess who will never be in favor of it? That is some real doom and gloom! The cap on paying into the system is what has ruined it.
Very true, and good point. I wanted to make the math as easy as possible not just for me but for casual readers. But yes, the bigger numbers are FAR MORE compelling. If I rewrote this, I think I’d have included my easy-to-grasp scenario and then added yours to really pound the point.
How did I not know this?! How is this fair?! It's bad enough to have accepted Social Security won't exist by the time I need it (which is so much sooner than I'm comfortable with now) but this is too much. And it's not like I never read about these issues. But I still hadn't understood this. So this is worrisome.
It's very worrisome and rightly so
I was wondering how self-employed Americans managed their Social Security contributions. Eek, now I know.
BTW Canada's Canada Pension program has an asset bank of $714 billion CAD (2024), which is considered adequate to fund the CPP for the next 75 years. By 2048 the CPP asset fund is estimated to reach $3 trillion CAD. Canadians pay into CPP just as Americans pay into Social Security. Our percentage is similar and income-based. Employers pay into it as well, matching the contributions of employees. In 2023, the total contributions to CPP were $55.3 billion - for ONE fiscal year. Canada only has 40 million people... and those who are retired no longer put money into CPP. You can see why almost no Canadians want to join the United States, just one of many reasons.
Very Very Very interesting and informative and insightful and the truth as to what's really going on with SSA
thanks