Nowadays, whenever Social Security comes up in policy debates around Washington, the discussion often focuses on how best to cut benefits in order to shore up the program’s finances.
Time for an expansion?
But a big new report (pdf) from the New America Foundation suggests that the conventional wisdom is exactly backward. Congress should be looking at ways to expand Social Security, not shrink it — particularly at a time when traditional corporate pensions are disappearing, and 401(k)s have proved fairly risky.
The big suggestion in this report is to add a brand new benefit to Social Security, called Part B, which would provide a flat $11,699 per year to all retired workers. This would come on top of the regular Social Security, which would also be protected from any further cuts.
The net effect is that the new Social Security program would replace a far bigger chunk of a worker’s lifetime earnings than the current program does.
It should be for all retired residents, not just workers. Domestic workers are often paid under the table. Housewives officially don’t “work.” Etc. Otherwise, right on!