It’s like a broken record. We’ve heard the warnings, the alarm bells being rung, the bleak prognostications for the future. What has been our response, what have we done to address the dire circumstances facing us down the road?
Nothing. Sure, we talk about it a bit, at least a few of us. But, even some of those involved in the discussion deny the negative forecast, spinning a positive to the facts. Beyond that, no effectual action has been taken to make any significant changes to what we know as Social Security.
While the program is administered by the Social Security Administration (SSA), the money is actually in the Federal Old-Age And Survivors Insurance And Federal Disability Insurance Trust Funds. Well, that’s how the accounting shows it. Depending on one’s perspective, there really isn’t anything sitting in those accounts but bad IOUs.
Anyway, the point we began with is how silent the majority of the politicians and talking heads are on its insolvency. It’s so radioactive no one wants to touch it. Which just makes the situation worse, of course. The longer we ignore it, the more severe will be the repercussions when we can no longer ignore it.
The best most anyone has come up with is to suggest minor tweaks here and there. Yeah, that’ll fix it. Never mind that the entire program, and every one like it, is seriously suspect when it comes to their lawful authority to even exist. As usual, the government has overreached in setting up these programs and then has followed the usual path of failing to deliver.The SSA will run out of sufficient funds to make all its outgoing obligations in just 16 years. That is soon enough to affect most of us, those of us already collecting benefits and those who will in the next few years. Click To Tweet
Social Security is Bankrupt
On top of all the other problems with the program, the ability to kick the can down the road is rapidly coming to an end. According to the most recent report from SSA itself, it will run out of sufficient funds to make all its outgoing obligations in just 16 years. That is soon enough to affect most of us, those of us already collecting benefits and those who will in the next few years. The reliability, or even existence, of Social Security is especially dubious for the younger generations.
“Let’s be crystal clear about what’s happening. Politicians and bureaucrats used to use the word ‘insolvent’ to describe Social Security’s future. They’ve now started to use the term ‘reserve depletion.’ The rest of us should use the correct term: bankrupt. Social Security will be bankrupt in 16 years. Politicians pull a sleight of hand by saying (when they manage to say anything at all) that Social Security won’t be bankrupt because it can continue to make 80 percent of promised payments into the infinite future. Everywhere outside the Washington beltway, ‘bankrupt’ means the inability to make promised payments. Being able to make partial payments doesn’t count. Those in doubt are welcome to try the argument with their credit card companies.
“The bottom line is that within 16 years, either Social Security recipients will have to take a 20 percent benefits cut, or workers will have to incur a 20 percent payroll tax increase. Either way, at least someone, and likely everyone, is going to be getting a far worse deal from Social Security than Social Security has promised.”
Read in more detail at The Deafening Silence on Social Security’s Looming Insolvency.