Is it Just The Rich Who Exploit Crony Capitalism?

No.

Most studies of US economic inequality focus on the rich, however rich is defined. But these days many dual-earner households pull in annual incomes that make them, if not rich, at least very well off. And millions of these households are drawing their incomes either directly from the government or from employers enriched by government enforced monopolies.

At ACC, we have for years criticized, not only welfare for corporations and the rich,

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The “I’ve paid in all my life” fallacy — Social benefits are often sold as insurance-based schemes. But they don’t work that way

If there is one thing that will get people worked up it’s talking about the real nature of Social Security.

Social Security is not an insurance product. It is pay as a society goes. Payroll taxes pay for people currently on Social Security. Then, one day the payers become payees. Or that’s how it’s supposed to work. But what happens when one generation (the baby boomers) is larger than the following generation?

And that’s just one of the giant problems that need to be confronted with Social Security.

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Social Security’s looming $32 trillion shortfall (That’s right 32 TRILLION)

But hey, who cares? I mean I’ll be dead by the time Social Security implodes. I paid into it. I want my money. That most people take out far more in Social Security than they put in in a lifetime means nothing to me. I was promised Social Security and darn it I am going to get my check.

The grand kids can figure it out.

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Charles Hugh-Smith – Why Real Reform Is Impossible: We Can’t Believe the Mighty Titanic Could Actually Sink

This one isn’t an uplifter but it is a sober assessment which deserves attention. Sobriety is a valuable thing, especially when dodging icebergs.

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Social Security Just Ran A $6 Trillion Deficit And No One Noticed!

You know why? Because no one wants to notice. No one wants to talk about Social Security and its problems, its Ponzi nature, its quietly ticking time bomb(s). No one wants to talk about it because we have come to believe that these sorts of things eventually work themselves out. And certainly no one wants to talk cuts, or means testing, least of all the people in Congress who would be slaughtered (likely) at the polls if they did.

So no worries.

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Pensions Drive Global Debt Three Times Higher Than Previously Estimated

The debt monster hasn’t gone away. It hasn’t been tamed. It is growing, lurking, just waiting for interest rates to rise. But right now, few are concerned.

In the words of Yoda, “You will be.”

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The young can’t fund the old. Our entitlement state no longer works. This is perhaps the West’s greatest challenge.

How much student debt do you think this guy carried? If he ever carried any it was unlikely the kind of sum kids are graduating with now. Do you think he benefited from a generally rising stock market and economy during the 50s, 60s, 70s, 80s, and 90s? He looks pretty well fed and well dressed. But “hands off” HIS Social Security. Your security is less important however.

When I was in college one of the first op-eds I ever wrote was on Social Security in the college newspaper.

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Millennials Favor Private Accounts for Social Security Even if Benefit Cuts to Current Seniors Required

Destined to fail from the beginning. We need to figure this out and make difficult choices.

Look, I think there should be a phase out of the old system over say 10 years.

Older people have made calculations with the idea that Social Security would be there forever as it is now. Most people are not economists. They just did their thing in their working life and then retired as they were told they should. If we are going to change social security we should be sensitive to this very important (and very political) point.

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