Here may be the crux of the resistance to personal Social Security accounts. Gross argues that income volatility is increasing. Below are some factors that create income volatility. However, equally important is the decreasing personal discipline in spending as evidenced by the $9,000-$12,000 average credit card debt and the notoriously low savings rate.
"The factors that functioned as internal shock absorbers for families have weakened. And so, too, have external buffers. Over the last three decades, the percentage of workers covered by defined-benefit pension plans and employer-provided health insurance - guarantees that provide ballast for fluctuating incomes - has declined. Add this to the trend of rising volatility - especially for people in the lower and middle income levels - and it's easy to understand the reluctance to transform a government program that guarantees seniors an income.
'Social Security provides a vital kind of insurance,' Professor Hacker said. 'The real issue lurking behind this debate is whether we should have a program that provides the bedrock protection against economic risk.'"
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