Social Security’s funding shortfall is relatively small and manageable. The trustees report reaffirms that Social Security is in excellent financial shape over the near term. The program will be able to pay 100 percent of promised benefits for more than three decades — until 2041. At that point, income will be sufficient to pay only 78 percent of benefits. Measured over the next 75 years, the amount by which income will fall short of what is needed to pay benefits amounts to 0.6 percent of gross domestic product (GDP). Many combinations of modest revenue increases and benefit reductions would remedy the projected shortfall for 75 years and beyond.[1] Social Security is structurally sound and does not require drastic changes.
Mar 26, 2008
"Relatively Small And Manageable"
From the non-partisan Center for Budget and Policy Priorities:
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4 comments:
Senator McCain's tax plans would cost about twice that. The latest war funding supplemental requested by Bush costs about 1.1 percent of GDP over the same period. So, yeah, relatively small is about right.
"Many combinations of modest revenue increases and benefit reductions would remedy the projected shortfall for 75 years and beyond."
So you ask people to pay more to get less, makes sense to me. LOL
Medicare is in even worse shape, so where does that money come from? More modest revenue increases and benefit reductions?
The report says the Trust Funds will be exhausted in 2041, so where is this pile of Trust Fund money kept. It's all paper government IOUs. The trouble really starts in 2017 when more starts being paid out than is coming, because that money has to come from somewhere or benefits have to be reduced at that point.
Anyone that says these aren't serious problems is just whistling past the grave yard.
Re: the trouble in 2017. It's only trouble if you don't believe in paying off your debts. Sure, the bill comes due then, but that's not trouble, it's simply the due date on the loan.
Just the due date of the loan you say, but there is no pile of money to pay, it all has to be borrowed. The value of the dollar is falling, so what if the Chinese and other countries say they don't want dollars and stop buying Treasuries. The government can't be run on a credit card forever.
The sad thing none of the duds running for president are likely to make things any better. Yomama and Broom Hilda want to start government health care and God only knows what that will cost and Nutcain says it's OK to be in Iraq for 100 years.
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