The same way someone making 10-20% less supports their family.
Send their children to America to work on a farm to exploit the currency exchange rate so that they can finally make enough money in Mexico to eat?
Something tells me this strategy isn't going to work again...
First you need to give some examples of people who can survive admirably on low wages with dignity. You can't just insinuate that people are able to live like that well without even the slightest shred of proof that is, in fact, the case. Not after I just posted links showing the crushing poverty many face. That's like saying "I'm going to pretend your evidence does not exist, because I simply don't like it!"
What does auto insurance have to do with health care and retirement benefits? Uninsured driver insurance is something you can choose to buy if you choose to drive. But saving $40000 is fairly easy: invest about $250/month, and after 10 years, you'll have about that much money.
No, I mean if you get into a serious accident and have to spend two days in the hospital that the hospital bill alone if you have no health insurance will be $40,000. Yes, normally you have liability in the case of cars but people perform hit and runs every day so that means not everyone has their bills paid for but everyone who gets hit has to go to the hospital if they get injured. That right there is a classic example of how a single bill can destroy someone's earnings.
Secondly, $250 a month is not do-able for everyone. I even went so far to lay the math out to explain it, but apparently you do not like to give credit to anything which disagrees with your position regardless of its potential veracity.
Although your numbers are ludicrously wrong, so terribly, horribly unimaginably wrong that I MUST REFUSE TO OFFER EVEN THE SLIGHTEST CREDIBLE EVIDENCE THAT THEY ARE, IN FACT, WRONG...let's try and stick with that example anyway. Average annualized return on stocks is about 9.5%. Let's use 8% to account for inflation. Investing $125/month for 45 years, he would have about $580000 at retirement age in current dollars, investing just $40/month (social security only), he'd have about $185000. Given current life expectancies, that means even a minimum wage worker only breaks about even on social security compared to the situation where he invested it himself.
LOL, your critical mistake is assuming these people have sufficient starting capital to make investments. Not all investments are created equal and you yourself should know that access to top funds with high returns is only available to the major players who have a considerable pot to invest. Not only that we have to deal with the consequences of low socioeconomic status, which often result in poor education outcomes and little interest that would even lead someone down the path of making proper investments let alone guarantee they would be able to pick smart long term investments to make for 45 years.
Remember that whole 2008 crash? Yeah, a lot of those middle-class investors like you're trying to encourage here lost their entire life savings because Goldman Sachs was able to pawn off all of its toxic assets onto pension funds and other investment vehicles predominantly used by America's non-mega-wealthy classes. Your advice does not in any way guarantee the outcome you assert and omits a great many determining factors which would work to prevent this outcome from being universally achievable.
Where do you think the money comes from? The tooth fairy?
Currently? We print it, and despite the unrelenting shrieks of the Austrians we have not had any runaway inflation even with three rounds of QE AND ongoing QE. "Money" in abstract is a tool for commerce, it represents liquid value for trade and it's an entirely abstract concept. Gold is not money, Silver is not money, Platinum is not money. All of those things are precious metals that while highly "Valued" are not universally valuable to everyone. So while Gold, Silver, and Platinum may be somewhat useful mediums of exchange they are nothing like the guarantees we have on requiring people to exchange paper dollars. With paper dollars even if someone has no use for Gold, Silver, or Platinum (even to trade with someone else) they can still buy and sell the items they want to customers who want them.
How is the federal government supposed to be able to give you a better return on your monthly contributions than the market?
Why is it the Federal Government's job to ensure you get a return on your contribution? Why does our system of self-government have to be subordinate to our economic system? I'm not even necessarily saying that the government shouldn't try and make sure you can earn money that way. Merely that your ability to make money should be entirely secondary in relation to Government's primary mission of securing liberty and wider prosperity in equitable proportion to all citizens. You shouldn't be able to make money doing things we can prove are harmful to the wider society. Like the financial collusion which fostered the crash of 2008. That was the banks making their buck on the backs of pensioners and taxpayers, I hardly think we should pay "The Market" the kind of deference that allows those situations to happen.
All they can do is borrow (meaning, future generations will have to pay it back) or invest in the market.
The raw size of our debt doesn't matter so long as inflation keeps interest payments manageable. We can effectively "Borrow money" forever. You see, the error here is that you're comparing personal finances to Fiscal Policy of a nation state that prints its own money and borrows in its own currency. We are also the world's reserve currency, which gives us a pretty sweet deal when it comes to issuing bonds. Interest rates are so low right now people are effectively PAYING US to hold their money because of the week economy.
Now tell me again, what exactly is the means with which this debt is going to be an insurmountable problem? Can you actually do the math to show me how catastrophe is going to materialize? Because if not then you're no better than the Austrians who keep insisting that Weimar Germany and Greece are hiding around every corner.
Neither the retirement programs nor medical insurance have anything to with "public health and sanitation"
Did you not read what I just wrote? They DO if people are too poor to pay to get themselves good food or medical care. Those people, are much more likely to get sick, and because we don't mandate paid sick-leave that means they're also the most likely to spread disease to everyone else. Similarly if they die, and they can't even afford a funeral plot, what exactly happens to the body? I mean it might get taken care of eventually, but by whom?
All of these things cause public health and sanitation issues because all of them contribute towards fostering an environment ideal for the unchecked spread of contagious disease. This occurring entirely because you decided to deny the poor proper access to the healthy food, medicine necessary to stay well, and in some cases the education necessary to even know how to take care of themselves at all.
or helping the indigent or extremely poor. You're engaging in the typical progressive lies, mixing up reasonable programs related to public health and welfare with individual retirement and health care.
I lied? What was the lie? What was the premise, why was the premise false, and what evidence do you have that I was being intellectually dishonest in making that statement? Secondly, are you telling me with a straight face that it will not create a public health hazard to have a very large underclass of poorly educated people who can't afford healthy food and can't afford proper medical care, and who probably can't afford to take off from work when they get sick? That won't contribute to the spread of disease? My point is that overall public health is determined by the general population's education in living healthy as well as their access to necessary resources such as food or medicine. Cut off a very large segment of the population from both of those and you significantly increase the risk of spreading disease because you are now forcing people to eat, live and work in unhealthy conditions. Do you wish to dispute this? Then please do so directly.
No, all you did was demonstrate your complete financial illiteracy.
I'm financially illiterate? LOL, you couldn't even tell me why the paycheck calculator's numbers were wrong. By the way, I've gotten official pay stubs from multiple jobs and can assert therefore with at least some confidence that their payroll tax numbers have never been off. (State and Federal withholding do vary though but we were talking exclusively about Payroll taxes at the time) If you wish to say they're wrong you don't get to avoid the hard work of proving them wrong. After all, if the math is bad shouldn't someone so financially literate be able to refute that with THE CORRECT MATH? ;)
It's no wonder that people like you have trouble making ends meet and retiring on their own.
Like me? LOL! I make over 50K a year, and am easily going to be making over 100K per year when I retire. I do App development for a major advertiser and can easily get a referral to any number of large companies looking to pay around six figures for what I do. The only reason I'm not making six figures already is because I love where I work and value more in life than just dollar signs. I also happen to know what being poor is really like much more than most because unlike most of the spoiled children whose parents paid to send them to Ivy League schools I moved out on my own with money I had earned and started my life for myself over 350 miles away from where I was born with nothing other than a suitcase full of clothes and some personal knickknacks after high school.
I'm no Horatio Alger character, but I've actually lived at multiple ends of the socioeconomic spectrum and I am eternally grateful for the compassion living like that has taught me. Granted, I don't know what the truest despairs of crushing poverty are because I could have at any time called for outside support, I simply chose not to out of pride.
You still haven't made a compelling argument why people like me should pay for your stupidity and your unwillingness to learn basic economics, and let's face it, these discussions are not about those fictitious "poor people in the street", they are about you, your lack of retirement savings, and your angst.
Oh, I do have plenty of angst, but it's nothing to do with my retirement savings. As for the compelling argument? That's easy, EMTLA requires the emergency room to treat anyone who has a serious health problem. This means that like it or not you are ALREADY paying for their mistakes, only, you are paying a lot more than you have to because you're only paying for the expensive surgeries and treatments that have to take place late into someone's condition because they were not able to start seeing a Dr. early and get proper preventative care.
An ounce of prevention is worth a pound of cure, and the numbers do bear this out in a lot of cases. So by agreeing to pay for everyone's healthcare we all actually save more money over the long term because we can smartly levy the taxes to make them as painless as possible for everyone, and also by putting the entire country into a single risk pool Uncle Sam is in a much better position economically to negotiate drug prices and the price of services in hospitals. This means that in many cases the ridiculous markups (over 400% in many cases) can be done away with, and since everyone is paying in who can afford to individual contributions are all much lower than they are now.
So really, you're not even debating about whether or not to pay for their mistakes you're merely negotiating on price. Now tell me, why would someone so smart and "financially literate" want to pay what could be 10x the cost? Sounds a little bit like a paranoid fear of Government is over-riding that sound judgement of yours. Of course I'd love to hear you explain how any of the above is still not sufficiently convincing (by bringing up additional verifiable problems I had not considered in my above statement.)
Your move. :)