New America Foundation: Staff Writers- Expanded Social Security: How to Empower Americans to Be Able to Plan Their Own Retirements

Pension Insurance System

Pension Insurance System

I agree that we should expand Social Security in America. Fifteen thousand dollars a year or whatever the minimal income for people who only have Social Security in their retirement years is simply not enough. And if we expanded in a responsible way that almost moved more seniors out of poverty as well as current workers. We would not only reduce poverty in this country but also expand our economy because we would have more  people with money to spend. But as the old saying goes there are ways of doing things and then there are ways not to do things. And I want to expand Social Security the right way that empowers more American workers especially low income and lower middle class. To have more economic freedom and independence and not have to have the base of Social Security in order to survive in their senior years. Not do it in a way that makes the entire country of 320M people in an economy of over sixteen trillion dollars dependent on one government or anyone else including Wall Street. For their financial survival and well being as they retire.

What I would do short and long term is to expand Social Security but do it in this way. So no American would have to retire and live in poverty. Get the base income of people on Social Security who have to have it in order to survive, up to 25-30K$ a year. We are first going to have to reform how the current system is financed but after successfully doing that. We would have the resources to increase the payments of Social Security for people who have to have it in order to pay their bills. But long term I would expand Social Security with an additional system called Social Security Plus. Which is personal retirement accounts funded by workers who would voluntarily be able to increase their own payroll taxes up to lets say 8-10% that would be matched by their employer. And for the self employed they would be able to increase their payroll tax up to lets say 15%. And all of these new taxes would be tax free for the workers and employers. As well as tax deductible for employers and workers up to lets say 100K$ a year so people and employers could afford to do this. And not be hit by a huge tax increase.

A nationalized retirement system or single payer pensions has been one of the last goals that Social-Democrats in America have been fighting for. Since they weren’t able to accomplish that in the New Deal and Great Society. As well as perhaps a nationalized banking system as well but Franklin Roosevelt never wanted to nationalize the retirement system. And he’s the God for Progressives in America but wanted to create a retirement insurance system especially for workers who wouldn’t otherwise have any income to support themselves when they retire. I want to keep that in tack as we empower more workers with the economic freedom to plan their own retirements and not be dependent on government once they retire or while they are still working. And we can do these things with a better education and job training system in America. So we not only have more workers but less low income workers and more people not just in the. Middle class but more workers doing well in the middle class who are able to save for their own retirements.

Under my plan the base of Social Security would still be there for the people who need it. But instead of nationalizing the retirement system and having an entire country of 320M people in an an economy of sixteen trillion dollars. All dependent on one government to plan their retirements for them. I would empower everyone to be able to manage their won finances and have the money to manage themselves.

About Erik Schneider

Full-time blogger on a multiple ray of topics and subjects, because of multiple interests.
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