Social Security is the only income many individuals rely on the retirement.
And politicians are coming up with new plans to mess with it.
And delay many individual’s payouts.
The politicians are great at finding projects to spend money on. It is the easiest way to buy voters and power. But these projects often suffer from terrible deficiencies. Either they are short-sighted or they generate unintended consequences that negate any program benefit. And they always blow their budget.
According to our source, American Conservative Herald, Sen. Marco Rubio and presidential adviser Ivanka Trump, are reportedly collaborating on a paid leave plan. Even though no official policy has been rolled out, Rubio supports a so-called “conservative” version of paid family leave: giving new parents the option to delay their Social Security payments and draw benefits while at home with a newborn.
But this plan is not conservative. Instead, it expands an overburdened entitlement program that desperately needs to be reformed. It is similar to the private practice of “taking money out of your house.” Rubio would like to create a maternity leave program in the same way. In effect, participants would be “taking money out” of their Social Security benefits to help fund time off to care for a newborn.
Harvard economist Martin Feldstein found in 1996 that each dollar of expected Social Security benefit reduces retirement savings by 60 cents. Social Security itself has disincentivized private savings, and it’s expansion into paid leave would only exacerbate this unfortunate trend. Rep. Tom Garrett recently proposed a plan that would allow individuals to delay retirement in exchange for some student loan forgiveness.
But Social Security was not created to pay for family leave or student debt forgveness. It was created to eliminate poverty among the elderly, a goal it may not accomplish if the fund is constantly raided. Rubio and Garret are both wrong for the reason explained. They are both Republicans, but there will be Democrats who will be ready with their own plans to use Social Security funds.
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