At 7:01 PM 2/14/95, Jim Devine wrote: >awhile back, I reported that according to Doug Henwood's LEFT >BUSINESS OBSERVER (no. 67, Dec. 22, 1994), the US social security >system's imminent demise was based on arbitrary assumptions. >Now the story reappears in BUSINESS WEEK (Feb. 20, 1995), in >Robert Kuttner's column. > >Interestingly, the two stories are different: in Doug's >it's the assumed dismal growth of GDP that produces SS bank- >ruptcy. In Kuttner's it's the assumed dismal growth of >real wages. Doug, which is it? both? > >Kuttner's article has the implication that if the SS system >fails (or is radically overhauled) it will be in part because of >employers' efforts to keep wages (net of benefits) down. But >if workers get a rising share of GDP (perhaps due to some >successful reform of the health care system, which seems >unlikely), the SS system will do better. Hmmm - Kuttner's researcher called me to find out where I got this from, and I, helpful sort that I am, told all. So the prick stole it without so much as a thank you, eh? The report of the trustees of the Social Security system present both GDP and SS taxable wage figs. The taxable wage base falls as a percent of GDP over time, because of increasing concentration of income at the top and growing capital income (i.e., most of the growth in income is above the SS taxable maximum, currently somewhere around $55,000). Doug -- Doug Henwood [[EMAIL PROTECTED]] Left Business Observer 250 W 85 St New York NY 10024-3217 USA +1-212-874-4020 voice +1-212-874-3137 fax
