by John T. Harvey says that social security cannot go bankrupt because it does not rely on a pool of money, but on our productivity instead.Because of machinery and automation we all produce far more than we need, and so we able to share some of what we produce with others. That means we can set up a system where people can retire from work when they get older because those in work can easily produce the extra that they need. And when these workers get older they too will benefit from this pension system and be able to retire early.Our level of productivity may change over time, more sometimes and less others, with a trend towards always improving, and so social security cannot run out of money, unless we decide to turn all the machines off.With productivity so much higher today, you wonder
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
New Economics Foundation writes Is the Labour government delivering on its promises?
Robert Vienneau writes Why Is Marginalist Economics Wrong?
John Quiggin writes Dispensing with the US-centric financial system
New Economics Foundation writes Whose growth is it anyway?
Because of machinery and automation we all produce far more than we need, and so we able to share some of what we produce with others. That means we can set up a system where people can retire from work when they get older because those in work can easily produce the extra that they need. And when these workers get older they too will benefit from this pension system and be able to retire early.
Our level of productivity may change over time, more sometimes and less others, with a trend towards always improving, and so social security cannot run out of money, unless we decide to turn all the machines off.
With productivity so much higher today, you wonder where all the money is going, especially when people are working harder than ever.
Economists may tell us that if we pay ourselves too much, or do less work, then the competition from other countries will wipe us out. Hmm, then who is globalisation working for, and why do we bother with it?
Forbes
John T. Harvey - Why Social Security Cannot Go Bankrupt