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The Effect of Rising Inequality on Social Security

Big MoneyRebecca Vallas, Christian E. Weller, Rachel West and Jackie Odum authored an article with the above title that was published by the Center for American Progress on February 10, 2015. Here’s an outline of what the article contains. A link to the complete article is at the bottom of this post.

The authors report what we all know. Social security is the basis for our retirement security with almost 2/3 of our seniors relying on the program’s benefits for most of their income. In 2012, “it kept more than 22 million Americans out of poverty.”

That’s a great thing, right? But, “rising income inequality poses a direct threat to Social Security’s financial health. In 2014, the Social Security trustees projected that without congressional action, the program’s combined trust funds would exhaust their reserves in 2033.”

The article offers an issue brief that explores how rising wage inequality has affected the financial outlook of Social Security and highlights relevant wage trends.

You can read the full article here.




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