Future of Social Security

* Re “Banking on Fantasies,” Sept. 17: Social Security is in good shape today and will be so in the future! The surpluses that will be gone by 2037 are based on the assumption that the economy will grow at only 1.5% per year for the next 75 years. This compares to the historical growth rate of at least 2.7% over the past 75 years.

It is true that the ratio of workers to retirees will continue its historic decline. However, this is offset by the continuing increase in labor productivity averaging about 2% per year. So in the year 2037 annual labor productivity will be double that of today. Comparing the ratio of workers to retirees is meaningless. It is the ratio of the future rate of productivity compared to that of today that is critical. Social Security will be in good shape as long as the economy continues to grow at its historical growth rate.

GEORGE N. SARAMES

Santa Monica

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While I agree that the campaign proposals do not address the problems of Social Security entitlements, I strongly disagree with two points in your editorial:

I disagree that the age at which full benefits are available should not be raised above 67. Benefit thresholds should be based on life expectancy and not politics or economics. Social Security acts as a significant disincentive for healthy adults to work past “retirement age” at a time of historically low unemployment. We could use many of those healthy seniors in our work force if they want to work.

Secondly, the Social Security payroll tax is an extremely regressive tax, because it taxes every wage earner and self-employed person from the first dollar of earnings at a flat percentage of earnings. Raising the Social Security wage limit to fund the Social Security trust fund should not be considered without graduating the tax the way income taxes are graduated or by not taxing the first dollars of income.

BARRY I. HOROWITZ

Woodland Hills