In 1950 there were 16 workers for every retiree; today it is about 3; and by 2030 it will be two. And by 2030, one out of every five residents of this country will be 65 or older, twice what it is today. We are being crushed by the welfare state. We can't afford it.
SS and Medicare are pay as you go programs. They are consuming a greater and greater portion of the US budget non-entitlement funding. 75% of the costs of Medicare Parts B and D are paid by the General Fund, by law. The premiums collected pay for only 25% of the costs. A greater expanded work force cannot cover those costs. Actuarily, it will not work.
“A greater expanded work force cannot cover those costs. Actuarily, it will not work. “
Your figures are right, and in spite of what you think, you and I are NOT in true disagreement.
Its not that SOME level of very expanded active workforce COULD help “save” Social Security (a population that grows to say 500 million with 60% of it in the age group of 20 to 40; making again 3 or more active workers for each retiree).
The problem is that that “COULD” was NOT feasible (not likely to happen) even before the present economic downturn and now, under the present economic, demographic and “jobs” picture, it appears it is not only not feasible (if some other trends were possible to develop) but under current trends that “COULD” moves from not feasible to not even possible.
You and I are not in disagreement. We had a Social Security deficit problem, an exponentially expanding problem, before the present conditions evolved. The present conditions demonstrate that the problem will be even worse.