No, it's not even close because the person knows at the bottom of the next 19 floors is the very end. In 20 years, Social Security will not be at its end. Why you continue to try and push this false narrative, when you clearly know better, is beyond my understanding.That is like someone who falls out a 20 story window saying I am not alarmed because I don't have a ground problem for another 19 floors.
Moreover, even if the trust fund reserves are depleted in 2033, SSA will still be able to pay about 2/3 of the benefits. But the solutions are what really doesn't make sense, which is to cut benefits now so we won't have to cut them in the future.
"I never meant to say that the Conservatives are generally stupid. I meant to say that stupid people are generally Conservative. I believe that is so obviously and universally admitted a principle that I hardly think any gentleman will deny it." --J.S. Mill
If you are not interested that is fine too. But then, I don't understand why you posted at all. The fact that payments are already coming out of taxes, the size of these payments will grow steadily till they reach 77% of social security payments (in addition to the contributions being made to the program by the insured) and will then reduce payments to the recipients is non ground for complacency. Do you have any comprehension of what the implications are for an economy that is already heavily in debt and is running a deficit of the size we are? Such equanimity might have been acceptable before 2007, though even then it would have shown a very low understanding of the dynamics involved. But now it is irresponsible. Absolute irresponsibility.
Bah, Its a simple fix for the government. Just have them infuse the trust fund with more money. I'm sure they can get a loan for it from China. They know we're good for it!
I have an answer for everything...you may not like the answer or it may not satisfy your curiosity..but it will still be an answer. ~ Kal'Stang
My mind and my heart are saying I'm in my twenties. My body is pointing at my mind and heart and laughing its ass off. ~ Kal'Stang
Like they always have. That's exactly how the system is set up.The fact that payments are already coming out of taxes
What? This sentence of yours makes absolutely no sense. Who is the "insured"?the size of these payments will grow steadily till they reach 77% of social security payments (in addition to the contributions being made to the program by the insured)
Maybe you don't understand. We can pay full benefits from Social Security for the next 20 years, without having to do ANYTHING (theoretically, since the economy is never completely stable and prone to positive and negative swings). 20 years, full payment, no problem.and will then reduce payments to the recipients is non ground for complacency.
We have 20 years to figure out and pass a law which allows us to meet the full financial obligation. Congress could pass a law tomorrow and by Friday we could have SS payed for for the next ~75 years. And even if no law is EVER passed, we STILL can afford to pay out over 75% of benefits as defined under law.
Yeah, it would suck for those receiving SS to only get 77% of what is legally promised to them under law, but it's not like they are going to get nothing. Social Security is a pay as you go system. There will never be a time where people aren't getting paid anything.
Do you have any idea what you are talking about? How does debt/deficit have anything to do with Social Security, when Social Security can ONLY be funded, under current law, by payroll taxes?Do you have any comprehension of what the implications are for an economy that is already heavily in debt and is running a deficit of the size we are?
No, what's irresponsible is how some Chicken Littles run around claiming the sky is falling and do not seem to understand what the acorn really is.Such equanimity might have been acceptable before 2007, though even then it would have shown a very low understanding of the dynamics involved. But now it is irresponsible. Absolute irresponsibility.
I'll try one more time to explain it to you, because I do not get the feeling you truly understand how Social Security works.
1. Current workers pay payroll taxes. These taxes are set aside specifically, and only, for Social Security.
2. Social Security payments are made from today's employees' payroll taxes.
2a. For example, if I'm working and you're drawing SS, the tax I pay in my next check theoretically goes straight to you.
3. The excess of payroll taxes paid went into the Trust Fund. For simplicity's sake, the Trust Fund does NOT pay Social Security benefits unless the amount of taxes is not enough to cover the amount of benefits.
4. We are currently in a situation where taxes to not make enough to pay out benefits, so we are now tapping into the Trust Fund after the decades of overpayments which were made.
5. We have enough in the Trust Fund to supplement current worker taxes to pay full benefits for the next 20 years.
6. If no law is changed, if the economy does not go through a prosperous period or anything which affects how long we can make payments, then those collecting Social Security will STILL receive over 75% of the benefits owed to them. The amount SS collects in taxes will be enough to still payout 75% of benefits on time.
7. Since the Trust Fund is ONLY used to supplement payroll taxes, any law passed which brings the amount collected in payroll taxes even with the amount paid in benefits means the Trust Fund will no longer be drained.
This is why having 20 years to do something about it really isn't something to become alarmed over. If we passed a law changing Social Security now or passed one in ten years, it will have absolutely no change in reality.
I seem to remember back in the mid 70's we were told that the SS fund would be completely depleted by the mid 90's. Didn't happen. If it was a real problem, why didn't the politicians deal with it at that time. The short answer is the SS is a campaign talking point for both sides. The main problem is the American people took money out of the fund and replaced it with IOU's via the politicians. Now it's time to replace those IOU's with real money. If we keep re-electing the same politicians over and over the problems will never be fixed.
I confess, I did it, I let the dogs out.
The System will cause massive problems within a relatively short period. Anyone that has ever had to do with national accounts and growth will see this in minute. Whether the initial crunch is because this or that part of it breaks and how or the insured just lose there payments is a different story and uninteresting to me at this point. But I did look briefly at the official ssa link and found this sentence that makes your assertion look very optimistic, indeed:
"In the annual Trustees Report, projections are made under three alternative sets of economic and demographic assumptions. Under one of these sets (labeled "Low Cost") the trust funds remain solvent for the next 75 years. Under the other two sets (the "Intermediate" and "High Cost"), the trust funds become depleted within the next 20 years. The intermediate assumptions reflect the Trustees' best estimate of future experience."