Studies by Kotilkoff and others have clearly shown that this cannot continue or well soon (within about this next generation) run out of having enough workers with income to pay the freight. Keep in mind there is declining employment in many industries overall and in many instances wage levels decline also. But regardless, one wage earner is not going to be able to pay for the entitlements of 2, 3, 4, etc. of the oldsters.
And we're getting very close to that tipping point. Also see my comments in #157 about the best solution from a tax system standpoint.
If you, as a 25 year old, had to give your entire paycheck to your 65 year old father, that would certainly suck for you. If your father needed that money to survive and you only gave him half your paycheck, that would certainly suck for him. These transfers do not change your family net worth.
So saying the unfunded liability of Social Security and Medicare is larger than our net worth and therefore we are bankrupt is simply wrong. We're simply moving it from one person's control to another's.