New Footing for Social Security

The long-term Liabilities Crisis in the United States perhaps can be viewed in camera, by the study of Japan and Italy. The realistic story of all such crises lies in the refusal to Tax at levels sufficient to actually fund the future Pension liabilities. Japan and Italy are only the first nations to be caught in the Trap of unfunded liabilities, a Situation which is unforgiving and accelerating. Foreign nations are basically to utilize the higher Retirement Age option, and finding little success, due to the organized resistence of the Elderly with their expectation of retirement.

I will propose a different Option, which will automatically gain myself great enemies. I will call this Option the Disability Option. No One retires under this Option until Medical Tests prove that Workers are too physically insecure to hold a Job. I can already hear the Screams suggesting this would be the worst system of all. The thing is that We can play with this Option in real ways, to remove the onerous nature of the Proposal. There are vital ways the Program can be worked out to satisfy many important Gains, while restricting the potential injury.

The foremost Benefit of this Option sits in Workers staying on the Payroll of Employers, a Labor Cost which is deductible; and one where Wage and Salary are set by overall value of the Labor. The previous Sentence is a very important cachet. A Law can stipulate that all Workers under the Age of Thirty receive One Week of paid Vacation, all Workers under the Age of Fifty receive Two Weeks of paid Vacation, all Workers under 65 receive Three Weeks of paid Vacation, and all Workers over 65 years of Age receive One Week per Month of paid Vacation. The Law could further stipulate all Workers receive a potential of Six Weeks of Medical Leave per year, and Vacation time can be compounded at whatever rate agreed to by Employer and Employee. All Disability Payments for Retirees will be accounted as One-Third of Salary at the time of Termination, but with automatic Cost-of-Living increases; half of the Disability payments to be paid by the Social Security administration, and half paid by the previous Employer–who will be able to account the Payments as Labor Costs. The Social Security Administration will assume all failed commitments by Employers due to Bankruptcy, but with the right and ability of the Administration to sue Employers for the unpaid Benefits under the Program. lgl