Posts in "Social Security"

By Sam Swedberg at 4:50PM

Feb 8, 2010

$107 Trillion

social uh oh

In 2009 alone we had $107 trillion worth of unfunded liabilites, 10 times our national debt. Unfunded liabilities are the difference between the promised benefits of current and future generations and the amount of taxes and Medicare premiums collected. How long will the American people, especially the younger generations, allow blatent stealing of their money for programs they'll never benefit from anyway? I haven't met anyone who is complacent about money they've rightfully earned, yet most people still don't bat an eye when looking at their paychecks. Is it based on a blind faith that government will always provide? Whatever the reason may be, something must change. The sooner the better.

This article from the National Center for Policy Analysis is a great tool for anyone interested in arguing why Medicare or Social Security should be scrapped.

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By UW-Madison at 1:05PM

Sep 29, 2009

Social Security is Now Running Annual Deficits

It was reported over the weekend that Social Security is now running a deficit due to lower revenues and an aging population.

The AP reports that this will not affect payouts but simply add to the federal deficit because SS has accumulated a surplus over the year. The only problem is...that money has already been spent. Our national debt is so enormous that it's foolish to act as if these supposed surpluses mean that those who have already paid into SS will get back their investment.

Also unrealistic is the claim that SS will begin to run surpluses again by 2016. This assumes the recession will end this year and a substantial economic recovery will immediately begin. So I'll predict right now, on the record, that SS will never run an annual surplus again...EVER.

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By Bonnie Kristian at 12:49AM

May 14, 2009

The Beginning of the End of Entitlements?

The Washington Post reports on upcoming troubles with the entitlement system:

Social Insecurity?

I was sitting in the living room with my aunt, a retired teacher, discussing the finer points of politics when inevitably the topic of Social Security came up with my AARP age family member. Now, my aunt is one step ahead of my grandmother realizing the system is just slightly more than failed. She realizes that she has been paying all her life with not much hope for return in the coming years and that for the younger members of our family the situation gets even worse.

Social Security was originally intended to be left alone and used only for retirement benefits for those who “invested” into the program. Matt Whittlief of United Liberty compares Social Security with a Ponzi Scheme: take money from investors to pay off prior investors.

“You invest in the fund with the promise of future returns, but, in fact, there is no investment made by the administrator. The only source of funds for the returns is new investment…

In other words, more taxes are collected from current workers than are paid out as welfare to beneficiaries. But, like all Ponzi schemes, this will come to an end. The welfare for beneficiaries will exceed contributions sometime in the next 10-20 years as baby boomers retire.”

My aunt, like Ron Paul, agrees that a change has to be made. We need to get my generation out of the deal. While my puny paycheck dwindles to pay for Social Security, a growing number of retiring baby-boomers and increased government spending project Social Security to be gone 2017. What do I get? Nothing. Check out this clip from the documentary I.O.U.S.A

Social Security by 2017