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Posted on 08/12/2012 10:08:28 AM PDT by TurboZamboni
WASHINGTON—Social Security's long-term funding shortfall is big by any measure. How big? That depends on how you look at it. Over the next 75 years, after Social Security drains its trust funds, the massive program is scheduled to pay out $134 trillion more in benefits than it will collect in tax revenue, according to agency data.
That's an immense number that could use further explanation. Three ways to look at $134 trillion spread out over 75 years:
— $30.5 trillion in 2012 dollars. We all know that $134 trillion won't buy nearly as much in 2086 as it would today. Social Security's number crunchers project that annual inflation will average 2.8 percent in the long term, after a short period of slightly lower inflation. When the annual shortfalls are discounted for inflation to 2012 dollars, they come to $30.5 trillion.
— $8.6 trillion in present value. This is a financial term that Social Security uses to reflect the time value of money. It means that if Social Security had an additional $8.6 trillion on hand today and invested it in a security that paid returns of 2.9 percent above inflation for 75 years, the program would have enough money to cover the shortfall.
The problem, of course, is that Social Security doesn't have an additional $8.6 trillion on hand to invest.
(Excerpt) Read more at twincities.com ...
and make this mandatory for gubmint employees to replace their current pensions.
They're living the real Matrix. Give 'em the red pill.
>>and make this mandatory for gubmint employees to replace their current pensions.<<
Oh, absolutely! All publicly-financed defined benefit plans should be prohibited by law. Get the government out of the investment business completely.
I stopped reading at “after Social Security drains its trust funds”.
There is no trust fund. It is a fiction. The so called “SS trust fund” is literally a file cabinet in WV (thank you Senator Byrd!) filled with IOUs that aren’t worth spit.
http://madashelland.com/?p=1199
I’m with you. As soon as I read the suggestion that there was something in a trust fund somewhere that hadn’t already been spent, I knew the rest was probably bogus as well!!!
>>and make this mandatory for gubmint employees to replace their current pensions.<<
Oh, absolutely! All publicly-financed defined benefit plans should be prohibited by law. Get the government out of the investment business completely.
Here in Arizona they give children health insurance if mom and or dad are unemployed or on welfare or any other reason they use.
The biggest problem is mom/dad get health insurance as well.
Its become a permanent part of life for many. Food stamps, healthcare, side jobs, welfare and SS D.
Try to tell them it may end or hit them hard and tell them they dont deserve it and watch the self righteous fireworks
There is no trust fund. It is a fiction. The so called “SS trust fund” is literally a file cabinet in WV (thank you Senator Byrd!) filled with IOUs that aren’t worth spit.
There is a Trust Fund; it’s invested in “safe government bonds.” So when the Treasury writes the social security check, it bills the Social Security Trust Fund - and that fund produces a bond which is a valid obligation of the Treasury itself. So instead of taking the money out of the right pocket, Treasury takes it out of the left pocket - but it still comes out of the Treasury either way, same difference.The SSTF exists, but it is nothing more than a record of money the government doesn’t have.A lot like “altitude above you, runway behind you, or fuel used” - the "three most useless things" to an aviator.
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