One might wonder why create an extension of the Social Security safety net. Look at fig.1

http://www.ssa.gov/finance/2004/Full_FY04_PAR.pdf

 

 

Taken from the 2005 SSA condition report fig.1 shows the continuous  decline of the poverty rate among seniors.  This decline is what I want to accelerate and, bring  to as close to zero as possible.

 

As the population gentrifies the purchasing power of the retired must increase dramatically to maintain a robust growth rate in the US economy. 

 

There are other elements of the ensemble that must be counter weighted to bring the US economy into a balanced growth oriented structure.  The first is the problem of youth poverty in the entry level positions. See fig.2

 

http://bls.gov/opub/ted/2001/apr/wk1/art04.htm

 

This is due to two parameters one is the low minimum wage for entry level workers.  This comes hand in hand with no health insurance, a true killer. The other is the overall decline in the " real median income" see fig.3

 

 

 

With these two out of balance add a third,  the fantasy  "tax cut jobs " and the 1.7 Trillion dollar deficit. Fig.4

 

Chart from " old blue " post on AARP( Economic Policy Institute)

 

Fig.5

 

This dismal Bush performance is why we need more customers with more money, NOW.

 

The number of folks looking for work, on a long term basis has risen to 21.5% from 20.5% .  The length of unemployment is up to 19.5 weeks from 19.1weeks. We are experiencing the Bush jobs bust.  Also compounding these problems is the slow wage growth, indicated by a 2.6% increase, which lags the inflation rate of 3%.  The slow wage growth is exacerbating the SSA Trust projected short fall. 

 

Take the lay of the land and see the changes coming, The demographics of the workforce will also begin changing.  The BLS has projected the upcoming dominance of the old farts in the work force. Fig.6

 

http://www.bls.gov/opub/ooq/2003/winter/art05.pdf

 

I personally hope the job projections hold, but we have the Bush jobs bust on our hands now. Fig.7 shows the large increase in the 45 to 64 crowd .

 

http://www.bls.gov/opub/ooq/2003/winter/art05.pdf

 

As can be seen in fig.7 if the retirees of 2010 to 2015 can't support the economy with enhanced spending, the USA will be in big trouble.  When the 55 to 64 group retires some body better have some money.

Here is the percent change in the labor force fig.8

 

http://www.bls.gov/opub/ooq/2003/winter/art05.pdf

 

fig.9 the current income make up of retirees.

 

http://www.ssa.gov/finance/2004/Full_FY04_PAR.pdf

 

fig.10

 

http://www.ssa.gov/finance/2004/Full_FY04_PAR.pdf

 

Looking at figs.9 and 10 brings home the importance of the Social Security benefits, for 65% of all retirees SS benefits are over 50% of their income fig.10 and, 91% of all people 65 and over are receiving SS benefits fig.9.  These are the people Bush wants to take a "inappropriate risk" in a overly complex "veiled" margin account, dubbed a SSA REFORM PLAN.

 

The 91% of people over 65 receiving benefits  will be  the future of our economy.  The 91% will have to drive spending in the 2010 to 2040 time period.  If we "old farts"  fail to fuel spending,  the US economy will fail.