Social Security Insolvency Accelerating, Study Says. Crisis is much closer than previously believed

Budget and Tax News via The Heartland Institute ^ | July 1, 2005 | Thomas R. Saving

[FairOpinion]

"True, the mix of benefits would change. Some benefits would come from the traditional formula and some would come from personal accounts. But personal accounts have the potential to actually increase benefits."

He gets it. And looking at his previous positions, he is talking from having seen it from himself.

[Question Liberal Authority]

Since when is the collapse of a multi-trillion dollar pyramid scheme, to the ruin of the entire world economy a "crisis"?

A "crisis" is when a woman touches the Koran.

[EGPWS]

Only through personal accounts can we assure that contributors to the Social Security system have the legal, moral, and political right to their pension benefits.

The reason, to a tee, why it will never, ever be passed through the house and senate.

[thoughtomator]

For people who are employed and under 55 the crisis is now, because you will never see a dime of what you are paying into Social Security without immediate and radical change in the program.

[EGPWS]

The full, official measure of the government's commitment to pay future retirement benefits in excess of future payroll taxes amounts to $12 trillion (in present value terms) under the current system. Just like debt, this cost grows with interest as time passes. Hence, transforming the system by introducing personal accounts won't create "new" costs. It will only make existing costs more visible.

Alas, let me the freedom to take care of myself and be guaranteed the option to ruin or make solvent and fruitful my own life.

If our government were to take such a mindset then government would have the unadulterated support of the public forever.

[billbears]

The only immediate and radical change in the program that should happen is immediate dissolvement of this scheme. Perhaps if conservatives ever come into positions of power within the government it may happen

[EGPWS]

For people who are employed and under 55 the crisis is now,...

For those who choose the path of government for crisis prevention, yes it is.

For those who don't want to depend upon government to take care of their every whim in life then it is just another tax to further the prospect of even more unwanted government service in our lives.

[thoughtomator]

I consider the government stealing a goodly chunk of my income under blatantly fraudulent pretenses to be a crisis in itself. I couldn't in my wildest dreams imagine depending on the government to take care of me when I get old.

[garandgal]

I totally agree that the current SS system should be disbanded. We may be able to do that gradually.

I do wonder about one thing, however. I honestly believe that this "private account" thing is a pre-emptive strike to avoid an absolute collapse of the stock market. Think about it...with millions of baby-boomers (who are heavily invested) about to start taking money out of the market for retirement funds...it will implode.

Is this not a possibility, or am I way off base?

[Iwo Jima]

Deficits will continue and amplify every year well beyond the turn of the next century.

No, it won't.

[Proud_texan]

"If our government were to take such a mindset then government would have the unadulterated support of the public forever."

Alas I have to disagree. The majority of American's have assumed the role of "gimmes" and not only need the transfer of wealth but seem to be proud of it.

Would Byrd get elected dog catcher if he didn't deliver huge amounts of pork?

[EGPWS]

I couldn't in my wildest dreams imagine depending on the government to take care of me when I get old.

Your no fool then.

I can't, in my wildest dreams, come to a complacent mindset that in a "free" system which is toted time and time and time again by politicians, during peak election cycles, as the basis of our way of life, that the more government control in our lives is a political directive to personal freedoms consistently.

[EGPWS]

Would Byrd get elected dog catcher if he didn't deliver huge amounts of pork?

If it weren't for the pork, his white sheets would have been tainted red a long time ago....

[EGPWS]

I totally agree that the current SS system should be disbanded.

I don't know you garandgal but I do know now that your I.Q. is at least double digit! : )

[AIC]

No, I don't think you are way off base. Not only will the mutual funds be hit hard but a lot of the stocks from 401k's and unions will be hit hard as well.

[EGPWS]

A "crisis" is when a woman touches the Koran.

Well, at least now I know tonight what the Koran isn't......

[EGPWS]

...with millions of baby-boomers (who are heavily invested) about to start taking money out of the market for retirement funds...it will implode.

Only if Christmas is banned and Santa Claus no longer is seen flying over the USA.

[EGPWS]

Not only will the mutual funds be hit hard but a lot of the stocks from 401k's and unions will be hit hard as well.

And resolution IYO is?

[jazzlite]

"Since when is the collapse of a multi-trillion dollar pyramid scheme, to the ruin of the entire world economy a "crisis"?

A "crisis" is when a woman touches the Koran."

Your words illustrate the insanity of liberalism very well..

[AIC]

The big thing that has to be realized here is that money from Social Security pays for a lot of programs that the gov. has that doesn't pay anything into the system. Example would be Public Broadcasting, grants given to all kinds of programs, including all kinds of health and health care testing and experiment programs that don't have anything to do with people retiring and money given to other countries.
Think about it. A person pays into the S.S. system, the company matches it at the same time. If you own your own business you have to pay double. The way that the progressive tax base is nowadays, a lot of people receive refunds EACH year instead of a cumulative amount from federal but will not receive anything from S.S. until if and when a person retires or is disabled. A person will not see any of it if they receive too much retirement money on retirement accounts from investment plans. If they do receive S.S. and have these plans a person will have to pay 50% to 80% taxes on the amount of S.S. they receive.
Believe me, it is not that there is not enough money taken out and paid into S.S. that is not enough, it's all the other programs that the S.S. monies is paying for. Cut out all of the programs that don't pay into the system and the Federal Gov. will have plenty of money for those that come after the baby boomer's. Any way you cut it, those programs are going to have to be cut when the baby boomer's are gone unless all kinds of immigrants pick up the slack.