Skip to comments.Economist: Social Security Is Insolvent, In Worse Shape Than Detroitís Pension Funds
Posted on 07/30/2014 7:59:50 AM PDT by Rusty0604
Social Security is insolvent, Boston University economics professor Laurence Kotlikoff told the House Subcommittee on Social Security at a hearing on Capitol Hill Tuesday. And its not bankrupt in 30 years, or 20 years, or 10 years. Its bankrupt today.
This is not my opinion. This is the only conclusion one can draw from Table IVB6 of the 2013 Social Security Trustees Report."
The economist also accused the systems trustees of a disinformation campaign to keep Americans from finding out that Social Security is in dire financial shape.
To their great credit, Social Securitys actuaries have been reporting the systems infinite horizon fiscal gap every year since 2002. And to their great shame, Social Securitys Trustees have been ignoring this comprehensive measure of the systems insolvency every year since 2002.
Unfortunately, those who proclaim the strongest desire to preserve and protect Social Security, particularly its Trustees, are doing their level best to destroy the system by ignoring or substantially understating its financial problems, he said
(Excerpt) Read more at cnsnews.com ...
The political raiders have removed $13.4T to buy pork at the expense of the needy.
A lot of old guys will be going hunting if their checks don’t come.
The Party of Detroit lock box.
A lot of old guys will be going hunting if their checks dont come.
Well, if they raise the minimum wage to $15 and hour that may help the revenue for social security; at least according to liberal logic.
Adding a gazillion new supposedly “disabled” people hasn’t helped.
Captain Obvious has been on to this one since I was in high school.
Professor Laurence Kotlikoff is just a “Hater” - SS is a perfectly sane program with logical funding and....
Great. I paid my taxes and SS all these years. Now soon to be Obamcare or take tthe penalty. Add to that higher prices for groceries, electric and other utilities, and gas. Hell who can make it unless you’re an elite these days. They just keep shoving it in deeper and deeper. Pfizer is going to have to come up industrial strength Preparation H soon...
Either in a cell or homeless and on the street; if old people don’t get their SS checks all they have to do is take out one of the DC politicians that stole the SS money and then the state will take care of them.
Nancy Pelosi said Social Security is solvent until 2035. And after that, can still pay 75% of promised benefits. So she wasn’t worried about financial problems of Social Security.
Did Nancy P. lie to all of us????
This calls for printing. The Fed can just buy up all the IOUs. Anything to make Obama and the democrats look good until a conservative gets in office and the whole house of cards collapses on itself.
And I can hear Obamas whining now in his childish ‘I’m concerned’ voice.
“If only the millionaires and billionaires who move their companies off shore paid a little bit more.”
“Two wasteful wars”
“Comprehensive immigration reform would solve all these problems.”
Talk about a racket. Best one I heard about is this: Husband commits a crime and goes to prison. Wife applies for social security disability and gets it FOR LIFE.
Raising the minimum wage would cause inflation and a wage spiral that no one would win.
I still want mine....still working at age 60 and so is my husband at age 62....he’s going to start collecting maybe this year....I wanted to work til 65 but now I’m rethinking it....anyway, we still intend to collect and yes WE DESERVE IT for working between us for nearly 95 yrs of work.
I'm guessing that over half of Freepers are on S/S.
Preparation H soon...
> Preparation H soon...
Good one...: )
Definitely more of a pain in the a$$ than hemorrhoids. At least they go away...
its all a game donchaknow?....social security disability, military disability, free parking passes.....free phones, free food, free college...IT’S ALL FREE!
That's some mighty expensive free stuff...
It has been broke since the democrats and republicans raided it in the 1960’s. It would be solvent if we followed the plan that Galveston, Texas did. They get great returns so naturally congress blocked everyone else from that.
We are having our money stolen!!
Excerpt: an employee who earned $25,000 annually for 40 years could retire with a 20-year payout of $2,297 a month under the Alternate Plan. Under the same circumstances, an employee making $125,000 annually could retire with a payout of $11,490 a month.
Social Security benefits change depending on the yearly adjustment for inflation, the year of retirement, and the age of the worker. But at a maximum, a worker who retires in 2011 at age 66 could receive $2,366 a month in Social Security benefits.
A lower-middle income worker making about $26,000 at retirement would get about $1,007 a month under Social Security, but $1,826 under the Alternate Plan, according to First Financials calculations.
A middle-income worker making $51,200 would get about $1,540 monthly from Social Security, but $3,600 from the banking model.
And a high-income worker who maxed out on his Social Security contribution every year would receive about $2,500 a month from Social Security vs. $5,000 to $6,000 a month from the Alternate Plan.
Actually, you'll be getting 75%, not 50%. I'm planning on doing the same thing in two years. After 40+ years of working, I'm tired of the BS.
I lost my shirt in a divorce a while back and massive maintenence payments, etc. prevented me from saving much of a nest egg. I’ll need SS IF I want to retire, which I don’t. But I was very well paid in IT and can live off almost nothing at my 32 acres in KY now. I could actually live pretty comfortably on my benefits at age 62. But I’d still be able to work on the grid part of the year and off the grid other parts... ;-)
But I’m honestly thinking that if I don’t start getting it as soon as possible I’ll never see any of it.
The difference between Social Security and Detroit is that Detroit can’t print money.
When that runs its course, they'll print trillions until everything collapses.
But don't worry, the very people who created and perpetrated this mess have made sure they won't suffer.
I would wait those few extra years. 25% adds up. In 4 years that is 100% more money. It will be there. Inflation will eat up the value......
ONLY Social Security “trustees” get away with calling a public debt the public owes itself - and must tax itself a second time to pay itself back - an “asset”.
It is ONLY with these fictitious “assets” that the “trustees” get away with claiming that Social Security income and “assets” are sufficient for now and ONLY in need of “fixes” to shore it up in the long run.
Any excess FICA payments to Social Security, not needed for current benefit payments, were NEVER “invested”, they were turned over to the treasury and spent along with general revenues and in return, the Social Security “trust fund” was given IOUs, which Americans must now, for the second time, re-tax themselves again to come up with the cash for those IOUs when Social Security needs to redeem them to pay baby boomers’ benefits.
It is accounting fraud at the highest.
Drill for oil in Kentucky!
Big Oil Well Flowing Naturally in Kentucky’s Backyard
A few people near me have drilled for natural gas and have been supplying it for free to their close neighbors and themselves.
SS depended on working Americans to support retired Americans. Workers and companies contributed. SS worked well.
Once jobs were exported and their product imported back [see what you buy] neither the worker or employer paid into SS. Equilibrium needs to be restored. Institute a SS tax on imports the same as on American companies and workers.
Some hemorrhoids require surgical removal.The bad ones don’t go away on their own.
You’re darn right that you deserve it,that’s YOUR money not some government entitlement program.
Inflating away the national debt has to be the plan at this stage.
Not for me because my retirement funds would disappear.
You have to admit their vote buying has been pretty successful.
Baraq got re-elected with 8% unemployment (13% actual), $4 gas, surging food prices, and trillion dollar deficits to the end of time. Something I thought was impossible.
Between your oil and gas business and making bourbon you will be well off : )
FICA is a middleclass tax. Contributions are capped at the upper level of middleclass wager earners. Bill Gates pays no more into FICA than the upper level manager. The poor and dispossessed pay little if none at all into FICA. Too many who do not pay into Social Security are reaping its benefits. It's a Ponzi scheme nearing the end of its life. The baby boomers are going to have a hard landing. When SS crashes, the world will come apart.
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