Why Does The Federal Government Subsidize Retirement?

by John C. Goodman

Source: Forbes

Have you ever wondered why we have a Social Security system? Now that the Obama administration and Congress are facing a “fiscal cliff,” it’s time to rethink that question.

Our federal deficit problem requires reforming the entitlement programs, the biggest of which are entitlements for the elderly. The necessity of reform will force us to ask why we have these programs in the first place. What are we trying to achieve?

Until the modern era, there really was no such thing as retirement. People worked until they could no longer work. At that point they needed a source of non-work income to support them. The income could come from savings, the earnings of other family members or from a pension.

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