OK - Ricardian Equivalence. All I had to do was read backwards.
Meantime: WHAT, or HOW MUCH DOES Social Security promise anyone? I'm on Social Security right now, and I don't know/never knew WHAT or HOW MUCH Social Security promised me. Maybe it's like reading backwards - something I didn't do when I needed to.
With respect to your Social Security questions, something else may be at work. Historically, Americans believed that Social Security and Medicare were earned benefits - suggested by "vesting" after 40 quarters and the specific formula. Both have been unchanged since 83. Many workers think the promise is in fact contractual, not an entitlement. Most of today's workers and certainly most of your students don't remember or weren't working in 1983 - so the system we have today is the same as it always was for anyone with less than 42 years of employment.
Certainly, the politicians lie about it all the time. Here is President Obama's 2007 campaign promise (ostensibly to raise taxes and) not to cut benefits: "... I believe there are a number of ways we can make Social Security solvent that do not involve placing these added burdens on our seniors. ..."
So, since the Clinton Administration in 1996, there has been talk/knowledge that the trust funds would be exhausted sometime in the 21st Century and that the preferred solution would be an increase in taxes, not a reduction in benefits (the third rail).
The other issue is, of course, the large number of American workers who are living paycheck to paycheck, paying off student loans, in debt due to consumer purchases, etc. The American Payroll Association annual study has consistently confirmed that 2/3rds to 72% of surveyed Americans agree that they would have some or significant difficulty meeting their current bills if their next paycheck is delayed 1 week - that's delayed, not missed, and delayed only one week!
Many aren't saving today, and those who are may be at their limit given their disposable income.
I enjoy your writing so much, including your pieces on common sense in economics.
In this context, I was intrigued to see the linked piece posted by UK philosopher Dan Williams on the very same day, on common sense in politics.
Maybe of interest to you, and should it spark any reflections I would be delighted to read them in a future post!
https://www.conspicuouscognition.com/p/status-class-and-the-crisis-of-expertise
"whether they find RE to be plausible"
What's RE?
OK - Ricardian Equivalence. All I had to do was read backwards.
Meantime: WHAT, or HOW MUCH DOES Social Security promise anyone? I'm on Social Security right now, and I don't know/never knew WHAT or HOW MUCH Social Security promised me. Maybe it's like reading backwards - something I didn't do when I needed to.
With respect to your Social Security questions, something else may be at work. Historically, Americans believed that Social Security and Medicare were earned benefits - suggested by "vesting" after 40 quarters and the specific formula. Both have been unchanged since 83. Many workers think the promise is in fact contractual, not an entitlement. Most of today's workers and certainly most of your students don't remember or weren't working in 1983 - so the system we have today is the same as it always was for anyone with less than 42 years of employment.
Certainly, the politicians lie about it all the time. Here is President Obama's 2007 campaign promise (ostensibly to raise taxes and) not to cut benefits: "... I believe there are a number of ways we can make Social Security solvent that do not involve placing these added burdens on our seniors. ..."
So, since the Clinton Administration in 1996, there has been talk/knowledge that the trust funds would be exhausted sometime in the 21st Century and that the preferred solution would be an increase in taxes, not a reduction in benefits (the third rail).
The other issue is, of course, the large number of American workers who are living paycheck to paycheck, paying off student loans, in debt due to consumer purchases, etc. The American Payroll Association annual study has consistently confirmed that 2/3rds to 72% of surveyed Americans agree that they would have some or significant difficulty meeting their current bills if their next paycheck is delayed 1 week - that's delayed, not missed, and delayed only one week!
Many aren't saving today, and those who are may be at their limit given their disposable income.