But that's only half the story. If the employed produce and earn more, they contribute more payroll tax. History provides examples of a smaller work force supporting higher living standards for a proportionally larger population. Despite repeated shortening of the workday and workweek and more holidays and longer vacations during this century, equivalent to reducing the work force, our economy has generated more goods and services and higher standards of living. Contrary to widespread impression, both manufacturing and service productivity have been improving.
Some commentators assert that the official figures understate the improvements.
Thus many will learn with surprise that the recent report of the Advisory Council on Social Security, although divided on many points, agreed that Social Security will continue to run substantial surpluses until 2019 and remain able to pay full benefits through 2029 and 75 percent of the benefits due thereafter. To enable full payment for the next 75 years will take income improvements and benefit reductions of only 2.17 percent of cash payroll. A council majority recommended covering new federal and state employees not yet within Social Security. That would improve their protection and Social Security revenue. The council rejected means-testing because that discourages savings.