Skip to comments.Social Security's $20 Trillion Shortfall: Why Reform is Needed
Posted on 01/17/2008 6:14:34 PM PST by newbie2008
Social Security faces an enormous future deficit: Between today and 2075, the inflation-adjusted shortfall is projected to reach a staggering $20 trillion. Although the problem with the current system is due in part to changes in demographics, the root of the problem lies in the fact that the Social Security system itself is poorly designed. Workers, particularly those under age 50, are slated to receive very low benefits in return for a record amount of payroll taxes they send to the federal government. 1 These workers could enjoy substantially greater levels of retirement income if they were allowed to place the bulk of their payroll taxes in professionally managed individual retirement accounts, 2 which historically have had significantly higher rates of return.
Defenders of the current system generally admit that personal accounts would make workers better off, but they also argue that the "transition cost" of privatizing would be significant. More specifically, because a major share of the payroll taxes now used to pay benefits would be invested instead in private accounts, policymakers would need to find several trillion dollars to finance benefits for current retirees and those nearing retirement (and, therefore, too old to take advantage of private accounts).
(Excerpt) Read more at heritage.org ...
It is bankrupt right now because every dime that was ever collected has already been spent.
This abomination of a system brings in so much power and money that not even the driver of the Straight Talk Express can speak with total honesty about how bad it is, or what really needs to be done to fix it.
Glad I was born in ‘45.
All of us baby boomers can only hope that they can tap into another government Ponzi scheme to pay us!
Ping list for the discussion of the politics and social (and sometimes nostalgic) aspects that directly effects Generation Reagan / Generation-X (Those born from 1965-1981) including all the spending previous generations are doing that Gen-X and Y will end up paying for.
Freep mail me to be added or dropped. See my home page for details and previous articles.
Man: "What happened to the money I gave you last week?"
Uncle Sam: "I spent it."
Man: "Maybe I should put some of this money in the stock market."
Uncle Sam: "Nah, too risky."
newbie2008, grab a bottle of hootch and take a shot every time you see the word “Ponzi” or “boomer” on this thread. You’ll soon be drunk.
Those taking the benefit will get their money and pay takes on same. Those not taking the benefit will receive a percentage tax break each year for the rest of their lives until they die said benefit exceeds the actual SS benefits they would have received.
Then it's up to government to STOP SPENDING!
Add Medicare and it becomes $47 Trillion. Future looks bright
Boomers are in charge now and instead of attempting to fix it, they piled on with the Prescription Drug Pandering Act
You can take my SS check....from my cold dead hands.
Exactly. The politicians will never reform SS because they won’t have trillion$ to toss around like confetti any more. They never rescind a tax once it’s in place and generating lots of play toys.
If the shortfall is $20 trillion, then no reform is going to fix it. Might as well send the bill to the Democratic Party.
The general fund ... we are awash in IOUs, worhtless IOUs. But don’t we have a ‘great society’?
I’m joking kiddo.
LOL! Could use that philosophy on any thread here. Theme = drink, theme = drink great idea. ;-)
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