Uhhh, if it's paying out more than its taking in then it's already insolvent. And those bogus IOU's don't change a thing because there's no pot of gold set aside to pay them off. We have to borrow to pay the difference, a classic sign of insolvency. If your empty left pocket owes your empty right pocket $1000 dollars, your right pocket is still broke.
Thank you for saving me the trouble of pointing this out. These programs are cash-in and cash-out. A negative cashflow is unmistakable insolvency. Reporting it any other way is journalistic malpractice.
In reality this is true - SS is broke.
In theory however, the money SS was ahead of the game all these years could have (SHOULD HAVE!) been set aside in that “lockbox” for the day when it went upside down.
Just because it’s now paying more than it’s taking does not make it insolvent. The fact that the “lockbox” had been “picked” was robbed and left with nothing inside is what makes it insolvent.
To use / modify your example, if my empty left pocket owes my empty right pocket $1000, I’m only broke if there is no money in my bank account. If there is money in my bank account, I’m in bad shape because I’m drawing down my account but I’m not yet insolvent.
In theory, SS could become solvent again if there was more money being deposited by workers than withdrawn by retirees. Demographics do not suggest that will become the case but it is not impossible.
The real story is that it is no longer a Cash Cow for the crooked Politicians. They will be more than willing to “Reform” it now.
All the money put in and the govt spent it and gave back IOU’s.
“If your empty left pocket owes your empty right pocket $1000 dollars, your right pocket is still broke.”
Very well said! This should be on billboards with Obama and Bernanke’s pictures next to it.