Even without the excesses of the rats on spending, regulations, and industry control, entitlement programs threaten to undermine the economy. We have seen the problem for many years. However, rat demagoguery, senior voting blocks, and political desire to spend excess payroll taxes have made changes impossible. Bush had a good idea to introduce some level of savings in personal accounts. Reagan should have proposed this idea in 80s. I see no solution except economic collapse to force changes. However, the baby boom generation will be robbed of the large amount of contributions because excess payroll taxes have already been spent.
Do you have a source for that assertion. I receive a federal pension and received notification over two months ago that there would be no COLA increase. Federal COLAs use the CPI-W for increases. I can't imagine that Congress would vote for an increase, which isn't supported by the formula. They would have to change the law to do that and it would set a terrible precedent.
However, the baby boom generation will be robbed of the large amount of contributions because excess payroll taxes have already been spent.
SS is a pay as you go system. Those contributions have been spent along time ago and any surplus turned into non-market T-bills, i.e., IOUs and deposited into the SS Trust Fund, which is part of the national debt under "Intragovernmental Holdings." The SS Trust Fund will use up the "surplus" by 2036. However, the reality is that the General Fund will have to come up with the money to redeem the T-bills.