Social Security now "cash negative" (Al Gore, Congress, Baby Boomers)
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Add in the baby boomers and this will snowball . Nobody seems to care because it's an election year.
"Social Security is hardly the biggest drain on the budget. But unless Congress acts, its finances will continue to deteriorate as the rising tide of baby boomers begins claiming benefits. The $2.6 trillion Social Security trust fund will provide little relief. The government has borrowed every cent and now must raise taxes, cut spending or borrow more heavily from outside investors to keep benefit checks flowing."
Government has spent the trust fund and with Obama wanting to expand the payroll tax breaks it will only get worse. I guess pretending it's not a problem seems to be the answer.
Hard to believe but there are still people thinking that when they see the FICA deduction on their pay check that the money is going into their numbered account. Many don't know that the employer sends their witholding and FICA to the U.S. Treasury. The file cabinet at the SSA is just full of I.O.U. papers.
There are also those born after 1960 that think they will get full benefits at 65 years old. [It's 67] Did somebody call SS a ponzi scheme?
Add in the baby boomers and this will snowball . Nobody seems to care because it's an election year.
"Social Security is hardly the biggest drain on the budget. But unless Congress acts, its finances will continue to deteriorate as the rising tide of baby boomers begins claiming benefits. The $2.6 trillion Social Security trust fund will provide little relief. The government has borrowed every cent and now must raise taxes, cut spending or borrow more heavily from outside investors to keep benefit checks flowing."
Government has spent the trust fund and with Obama wanting to expand the payroll tax breaks it will only get worse. I guess pretending it's not a problem seems to be the answer.
The numbers I'm seeing show 2028 to be total catastrophe. That is when the Trust Fund is exhausted.
If you were born in 1961 or later, there's no benefits for you.
I know some geek will say the June 2011 SSA Report says 2037, but their numbers are FUBAR. I'm not talking about their cost assumptions, I'm talking about their financial and revenue assumptions.
They assume the US GDP will grow at an average rate of 6.4% per year. That is totally absurd. I would be embarrassed to publish something that made such an outrageous claim, and the people who endorsed it should be taken out and shot for foisting such nonsense on the people.
Because their GDP assumptions are FUBAR, they compound that error with bogus revenue assumptions, claiming that Social Security revenues will increase 7.1% per year, which is equally absurd. It doesn't even matter now that Obama has totally mucked it up with his tax decrease bribe to the masses.
5 years ago, I was predicting Social Security's Day-to-Day Operations would go bankrupt in 2012 (even though they were claiming 2018). SSA actually went bankrupt in 2009, 3 years ahead of schedule.
Anyway, unless major changes are made, 2028 is when the whole thing goes bust.
That's when the non-existent Trust Fund is gone, and new beneficiaries will not get paid and everyone receiving benefits will have them cut.
In case anyone missed it, there will be a 3.6% COLA raise effective January 2012. I did not factor that in, and there's no point in doing the math since that won't affect the 2028 SSA Crash Date (other than moving it from say August 2028 to March 2028).
Add in the baby boomers and this will snowball . Nobody seems to care because it's an election year.
"Social Security is hardly the biggest drain on the budget. But unless Congress acts, its finances will continue to deteriorate as the rising tide of baby boomers begins claiming benefits. The $2.6 trillion Social Security trust fund will provide little relief. The government has borrowed every cent and now must raise taxes, cut spending or borrow more heavily from outside investors to keep benefit checks flowing."
Government has spent the trust fund and with Obama wanting to expand the payroll tax breaks it will only get worse. I guess pretending it's not a problem seems to be the answer.
Great! Time for Obama and all the liberals to start spending more money than we have and accelerate the path to social anarchy. When people are killing one another for food, then, and only then, will the liberal be happy.
Hard to believe but there are still people thinking that when they see the FICA deduction on their pay check that the money is going into their numbered account. Many don't know that the employer sends their witholding and FICA to the U.S. Treasury. The file cabinet at the SSA is just full of I.O.U. papers.
There are also those born after 1960 that think they will get full benefits at 65 years old. [It's 67] Did somebody call SS a ponzi scheme?
How did Bernie Maddoff get caught?
Looks like the Treasury Dept has been caught with the SS admin, pulling the strings.
Add in the baby boomers and this will snowball . Nobody seems to care because it's an election year.
"Social Security is hardly the biggest drain on the budget. But unless Congress acts, its finances will continue to deteriorate as the rising tide of baby boomers begins claiming benefits. The $2.6 trillion Social Security trust fund will provide little relief. The government has borrowed every cent and now must raise taxes, cut spending or borrow more heavily from outside investors to keep benefit checks flowing."
Government has spent the trust fund and with Obama wanting to expand the payroll tax breaks it will only get worse. I guess pretending it's not a problem seems to be the answer.
I don't remember one Democrat Congress critter ever saying anything other than about the trust fund which is nothing but a bunch of IOUs they have put in it in the manner of bonds. The Congress of the United States owes the people of the nation all that, I think closer to $3.5 trillion and I guess they have meant to take it out of their own pockets () since they just kept spending it until there was no longer any "surplus" last year. They are still talking about it being well because of that "trust fund" as if we could spend their bonds.
It still chaps me every time I hear someone call SS an entitlement since I have paid into it for over 65 years. Yes, because of how it was set up I have collected more in my 14 years of taking out but if we had taken the hands of Congress out of the fund long ago the plan of FDR's Brain Trust for the program would still be looking pretty good.
In the Post article I saw a mention of a giant raise in the amount of money we pay and I still haven't seen much of a raise in that tax that wasn't called for in the original law. Congress is to blame for the whole problem and for the fact that we are in the hole even though there isn't enough taken to take care of things.
The numbers I'm seeing show 2028 to be total catastrophe. That is when the Trust Fund is exhausted.
If you were born in 1961 or later, there's no benefits for you.
I know some geek will say the June 2011 SSA Report says 2037, but their numbers are FUBAR. I'm not talking about their cost assumptions, I'm talking about their financial and revenue assumptions.
They assume the US GDP will grow at an average rate of 6.4% per year. That is totally absurd. I would be embarrassed to publish something that made such an outrageous claim, and the people who endorsed it should be taken out and shot for foisting such nonsense on the people.
Because their GDP assumptions are FUBAR, they compound that error with bogus revenue assumptions, claiming that Social Security revenues will increase 7.1% per year, which is equally absurd. It doesn't even matter now that Obama has totally mucked it up with his tax decrease bribe to the masses.
5 years ago, I was predicting Social Security's Day-to-Day Operations would go bankrupt in 2012 (even though they were claiming 2018). SSA actually went bankrupt in 2009, 3 years ahead of schedule.
Anyway, unless major changes are made, 2028 is when the whole thing goes bust.
That's when the non-existent Trust Fund is gone, and new beneficiaries will not get paid and everyone receiving benefits will have them cut.
In case anyone missed it, there will be a 3.6% COLA raise effective January 2012. I did not factor that in, and there's no point in doing the math since that won't affect the 2028 SSA Crash Date (other than moving it from say August 2028 to March 2028).
Why has that COLA come about for next year? Oh yeah, Obama thinks he might need a few old folks votes and since he cut us out of 2 consecutive years of it he has to make an attempt to "buy" our votes. However, some people haven't noticed that that raise will about pay for the raise in Medicare payments we get next year. Good old political ploys never seem to stop.
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