Social Security takes 12.4 percent annually from just about every income earner. The employee pays 6.2 percent directly, and their employer contributes the other 6.2 percent.
In 2010, the Wall Street Journal published a study done by analysts William Shipman and Peter Ferrara that analyzed what an average-income earning couple would have accumulated over a 45-year working life if they could have put that 12.4 percent of their income in an investment account instead of paying Social Security taxes.
They assumed the couple retired in 2009 right after the stock market crashed and they used actual historical stock performance data for the 45 years from 1965. Even with the big market drop, their savings could have paid out about 75 percent more than they would have gotten from Social Security.
We should also be aware that Social Security taxes are paid just up to $113,700 in income. After that you are free. So Social Security is clearly biased against wealth accumulation of lower income individuals.
We, of course, can expect that liberals will start screaming if anyone proposes to allow low-income earners any choice - even an option - to get out of social security and invest in a retirement account.
Black Americans can listen to them and watch their income and wealth stagnate for another 50 years, while the wealth gap continues to grow.