Originally posted by no1marauder
That doesn't make any sense.
it makes perfect sense.
workers pay monies into a fund intended to benefit them upon retirement.
if the government is holding on to this money instead of paying it back out, it is harming the worker who put the money in there. especially when it splurges on nonproductive things, or counterproductive things like tobacco farm research.
if it were just a fair-weather fund, that'd be one thing, but apparently it's serious money.
Estimated net Social Security benefits under differing circumstances
In 2004, Urban Institute economists C. Eugene Steuerle and Adam Carasso created a Web-based Social Security benefits calculator. Using this calculator it is possible to estimate net Social Security benefits (i.e., estimated lifetime benefits minus estimated lifetime FICA taxes paid) for different types of recipients. In the book Democrats and Republicans - Rhetoric and Reality Joseph Fried used the calculator to create graphical depictions of the estimated net benefits of men and women who were at different wage levels, single and married (with stay-at-home spouses), and retiring in different years. These graphs vividly show that generalizations about Social Security benefits may be of little predictive value for any given worker, due to the wide disparity of net benefits for people at different income levels and in different demographic groups. For example, the graph below (Figure 168) shows the impact of wage level and retirement date on a male worker. As income goes up, net benefits get smaller - even negative.
Impact of gender and wage levels on net SS benefits
However, the impact is much greater for the future retiree (in 2045) than for the current retiree (2005). The male earning $95,000 per year and retiring in 2045 is estimated to lose over $200,000 by participating in the Social Security system.