Friday, July 26, 2019

Retirement Observations


Before retirement planning was transferred from families to governments, most people worked until they were too disabled to work and widowed siblings moved back to the family owned “family home”. The firewall against starvation was family wealth and income. Family members took care of ailing siblings at home and doctors made “house calls”.

Before 1913, there was no Individual Income Tax and no Inheritance Tax in the US. Family farms, homes and businesses were not lost to inheritance taxes. Allowing families to keep their money was a motivator within families to be frugal and productive. 

Average Life Expectancy in the US increased by 60% for men and 63% for women from 1900 to 2000. Penicillin was introduced in the 1940s and is the major reason for the rise in average life expectancy. Contributing to that was the decrease in still-births and delivery trauma. Average Life Expectancy is a statistic that takes a death at age 1 and averages it with a death at age 100 and gets an average of 50.  It’s obvious that 60 million abortions in the US have not been averaged in to US statistics.

Historically, humans have lived the same lifespans as today from age 1 to age 100 in all centuries for the past 2000 years. Death from accidents, disasters and wars are added to deaths due to illness. Death due to illness have declined due to the invention of penicillin. We have yet to find a cure for cancer, ALS and other illnesses, so we still have early death from these illnesses.

Statistics are brought to you by the statistician who drowned in a lake with a mean depth of 3 feet. The low life expectancy brought to you in the 1800s through 1910 were due to infectious diseases and wounds that required penicillin before it was invented. These infectious diseases included black plague, leprosy, syphilis, small pox, malaria, tuberculosis, scarlet fever and others. 

The addition of chlorine to remove bacteria from water occurred in the 1920s ended cholera, typhoid, E-Coli, hepatitis and others. Water treatment ended these in the 1920s. In 1930, the US entered a normal period for life expectancy.

Life Expectancy by Year
Year   Men  Women
1900   47      49
1910   49      52
1920   54      66
1930   60      64
1940   62      67
1950   67      72
1960   67      74
1970   68      76
1980   71      78
1990   73      80
2000   75      80


In 1935, the US government imposed Social Security. The average life expectancy was age 60 and the retirement age was set at age 65. Employment was assumed to be available to men who were expected to remain with the same company for life. Companies had their own Pension Plans for employees who retired from these companies.

A group of egg-heads decided on age 65 as the official retirement age, because they observed workers getting slower at age 65.  Congress liked it because they got to spend our Social Security tax money if the average life expectancy remained at age 60.

But in 1964, Congress voted to take over paying for healthcare with Medicare and Medicaid. This would result in a better than 10-fold increase in healthcare, because consumers no longer controlled the price of healthcare.

It’s never a good idea to put government in charge of healthcare and pensions or anything else, while being bribed by these industries. It’s a conflict of interest and costs will explode.

Norb Leahy, Dunwoody GA Tea Party Leader


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