How Low Wages Hurt Social Security

[buzzroller]

Many in both parties have attributed long term social security problems to increased life expectancy and the baby boom. Monique Morrissey of the Economic Policy Institute has written another paper concluding that lower wages and wage inequality play a larger role.
ProSense posted her earlier paper here:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=433x601952

Her more recent paper is here:

http://www.epi.org/blog/wages-social-security/

I think this is important to share again because corporations control our government to a great extent and typically push a low wage agenda. The motivation to reduce social security benefits may be coming from wanting to push a low wage agenda instead of concern for insolvency based on longevity or baby boom effects.

As a consequence, I think we need to push the message that higher wages will solve our social security solvency issues and also make cuts unnecessary. Many of our elected Democrats should be pushing this as well.

[Sekhmets Daughter]

1. I've been saying this for at least 6 years....

I am amazed that more people don't understand this without research papers. It's quite simple really.

[forestpath]

2. Very good point.

[AnotherMcIntosh]

3. Low Wages FROM SHIPPING JOBS TO FOREIGN COUNTRIES Hurts Social Security

If President Obama is a liberal or progressive populist, he does not have to sign the pending let's-ship-even-more-jobs-to-foreign-countries "free trade" agreement. The TPP, which will ship even more jobs to Southeast Asia (China, Viet Nam, etc.), is being called the NAFTA of the Pacific.

But what is he going to do? Is he going to sign it?

1. His Administration is participating in the negotiation of the TPP. He has not criticized it in the least.

2. He reneged on his 2008 campaign promise to do away with the job-damaging NAFTA provisions.

3. Since reneging on that promise which helped get him elected, he signed three more job-shifting "free-trade" agreements.

QED: Of course he's going to sign it. He is not a liberal or progressive populist American President, but an internationalist corporate one.

[reteachinwi]

4. A seat at the table

We should pressure him to include labor and social justice group's input in the agreement. They have been marginalized.

http://www.itfglobal.org/news-online/index.cfm/newsdetail/8315

[AdHocSolver]

5. Similarly, government deficits are due to loss of jobs and lower wages.

The biggest cause of our fiscal problems are due to outsourcing of jobs.

Unemployed people don't pay taxes and don't contribute to Social Security.

The surplus revenue during Clinton's Presidency was mainly due to the high employment rate.

The high employment rate also helped maintain high wages.

The corporate designed trade agreements such as NAFTA, the WTO, and its ilk that export jobs and produce such huge trade deficits are the MAIN reason this country is in such dire economic straits.

Until steps are taken to bring jobs back to the U.S. by taking the huge profits out of exporting jobs, just rejiggering the tax rates by small amounts won't solve anything.

[davidn3600]

6. With so many job seekers out there, employers don't feel any pressure to raise wages

When an employer is getting dozens or sometimes even hundreds of resumes for a single position, they are going to go as long as they can go as far as salary is concerned.