February 15, 2005
It's The Paycheck, Stupid
According to Frank, one of the (purposely) overlooked solutions for the Social Security "crisis" is simply to raise wages just one percent above the current growth rate, thus generating more contributions that will ensure stability for at least the next 55 years.
But, "under privatization, all guarantees are off", says Frank. "Your retirement is tied solely to the size of your portfolio, which in turn is tied to your willingness to work--longer hours, and on the boss's terms. The new economics of retirement will thus pay dividends in increased workforce discipline and will also force millions to continue working well into their retirement years, enlarging the labor force and helping to keep wages down."
In 1985, I began working full-time as a union fish butcher at $9.06 an hour. I have a 62-year old relative currently working at Wal-Mart making $7.50 an hour. When she hits 65, I'll buy her a nice walker with tennis balls on the feet for easy gliding around the store.