Saturday, February 10, 2007

Rube Goldberg fixes Social Security

How Rube Goldberg might fix Social Security:

FIRST: Unionize American labor across the board.

SECOND: the other 90% of American hourly wages begin to catch up with the 70% increase in labor productivity that has occurred since 1973 -- which they have completely missed out on until now.

THIRD: Americans cut way back on their working hours (we work 50% more hours than Europeans, today).

FOURTH: American GDP takes a one-time drop (per capita output is currently one third larger here than modern Europe only because we work more hours).

FIFTH: Social Security coffers are flooded with new revenue (as hourly wages below the 84 percentile cap – the only incomes whose growth impact FICA collections – finally grow!).

SIXTH AND MOST IMPORTANT: Social Security collections go on a pay-as-you-go basis for all time – potentially while cutting FICA rates immediately – hopefully while raising benefits formulas over time (as all American incomes again race along side productivity – about four times population growth’s pace -- forever).

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