No one can deny that Social Security is a Ponzi scheme or chain letter. There is no way plans of that kind can work unless all the factors in place when it is initiated remain the same. Knowing that that could never happen, a more flexible plan could have been devised to take into account probable changes.
No one really knows what lies ahead in life. We insure our lives, health, homes and valuables, cars, etc., why not poverty insurance. Actuaries can predict with a reasonable estimate of the population which may need financial assistance at retirement. If we assume that only 30% will need assistance instead of 100%, obviously the payout would be less so "premiums" would also be lower than the current tax. As with any other insurance, premiums would be adjusted to fit the economic health of the fund.
The same principle used for SS could be applied to Medicare. A means test for an amount to be charged in premium fashion from zero to full charge. Most people recognize the value of other kinds of insurance even if they never receive any benefit from some (Never get sick, never have an auto accident). It's a gamble for everyone and you always hope that the thing you are insuring yourself for never happens.
No one really knows what lies ahead in life. We insure our lives, health, homes and valuables, cars, etc., why not poverty insurance. Actuaries can predict with a reasonable estimate of the population which may need financial assistance at retirement. If we assume that only 30% will need assistance instead of 100%, obviously the payout would be less so "premiums" would also be lower than the current tax. As with any other insurance, premiums would be adjusted to fit the economic health of the fund.
The same principle used for SS could be applied to Medicare. A means test for an amount to be charged in premium fashion from zero to full charge. Most people recognize the value of other kinds of insurance even if they never receive any benefit from some (Never get sick, never have an auto accident). It's a gamble for everyone and you always hope that the thing you are insuring yourself for never happens.
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