The Social Security trust fund will start going bankrupt in 2013

posted at 6:01 pm on June 22, 2012 by Dustin Siggins

Last week, Just Facts President James Agresti and I co-authored a post for Hot Air describing how some on the left mislead the public regarding the importance of entitlement reform. Today James has released disturbing new information on a misleading statement in the newest Social Security Trustee report on the future of the program:

The 2012 Social Security Trustees Report—the authoritative source on the program’s finances—states that the program’s “trust fund assets” will “continue to grow” through 2020, a claim that has been repeated by numerous sources as varied as US News & World Report, the AFL-CIO, and the American Academy of Actuaries. However, as revealed by data buried deeper in the 252-page Trustees Report, this assertion disregards the effects of inflation, which are projected to overrun any expected trust fund gains and contribute to an accelerating decline that will start in 2013.

This is not the first time the government has failed in its duty to inform the public as to the fiscal reality of Social Security. Consider the following since the program began:

1. In 1936, the government told Americans the following:

The taxes called for in this law will be paid both by your employer and by you. For the next 3 years you will pay maybe 15 cents a week, maybe 25 cents a week, maybe 30 cents or more, according to what you earn. That is to say, during the next 3 years, beginning January 1, 1937, you will pay 1 cent for every dollar you earn, and at the same time your employer will pay 1 cent for every dollar you earn, up to $3,000 a year. Twenty-six million other workers and their employers will be paying at the same time.

After the first 3 year–that is to say, beginning in 1940–you will pay, and your employer will pay, 1.5 cents for each dollar you earn, up to $3,000 a year. This will be the tax for 3 years, and then, beginning in 1943, you will pay 2 cents, and so will your employer, for every dollar you earn for the next 3 years. After that, you and your employer will each pay half a cent more for 3 years, and finally, beginning in 1949, twelve years from now, you and your employer will each pay 3 cents on each dollar you earn, up to $3,000 a year. That is the most you will ever pay.

Clearly, given that Americans pay 12.4% of their income into Social Security (including 6.2% from employers) up to $110,800, this has not proven consistent.

2. At least twice from 2000 to 2010, the trustees drastically overestimated the future of how much income the program would have for every dollar it spent in 2011. The two years cited in the linked graph overestimated the size by 27% and 20%, respectively.

3. In 2010 the program spent more than it took in for the first time since 1985, and it is expected to do so until my great-grandkids are adults. This was not expected to take place until 2017, though to be fair to the trustees, the recession greatly impacted Social Security’s finances.

4. The 2010 Trustee report estimated Social Security would require taxes to rise by 28% or benefits to be cut by 22% in 2037 in order to keep the program solvent. The 2011 report said similar changes would have to be made in 2036. According to Agresti, the 2012 report says the following:

After 2033, Social Security’s projected shortfalls could be covered by increasing payroll taxes by 33% starting in 2033 and rising slightly thereafter. These deficits could also be covered by reducing benefits by 24% starting in 2033.

In short, the last two reports have said Social Security’s life span is worse than the previous year’s estimate, and the cost of keeping the program healthy has risen dramatically. Clearly, Senate Majority Leader Reid’s (D-NV) January 2011 statement that we should talk to him in 2036 should be updated.

5. Legislative changes made in 1983 were supposed to allow the trust fund to last until 2063. As shown in Point 4, this is not even close to reality.

Unfortunately, Congress appears unwilling to make any significant changes to Social Security, whether they be indexing the retirement age to life expectancy, means-testing the program or allowing partial or full privatization of benefits. Had these or other options been put into law 20 or 25 years ago, they could have greatly extended the life of Social Security with the most minor of impacts on retirees, those near retirement and those decades away from retirement. Instead, elections took priority, and now we are at the point where only major changes will prevent a fiscal collapse of Social Security. How big will this collapse be? Agresti outlines the sad news:

There are several other ways of expressing the program’s expected shortfalls. One measure commonly cited by the press is the 75-year open group unfunded obligation, which amounts to $8.6 trillion. This represents the money that must be immediately added to the trust fund to cover projected shortfalls for the next 75 years. To give this figure some context, it is equivalent to 10.7 times the total income for Social Security in 2011 or an additional $54,500 from every person who paid Social Security payroll taxes in 2011.

The open group unfunded obligation, however, does not provide a full accounting of Social Security’s commitments. According to the Treasury Department’s Financial Report of the United States Government, this metric “understates financial needs by capturing relatively more of the revenues from current and future workers and not capturing all of the benefits that are scheduled to be paid to them.”…This approximates the method by which publicly traded companies are required by law to report the finances of their pension and retirement plans, and it currently amounts to $21.6 trillion or an additional $136,900 from every person who paid Social Security payroll taxes in 2011.

Even the closed group unfunded obligation assumes a proactive approach to Social Security’s looming deficits. If, instead, we continue on our current path and just borrow the money to fund these programs, the shortfall will amount to an additional $276,000 (in 2012 dollars) for every person expected to be paying Social Security taxes in 2086.

Clearly, Social Security’s future is getting worse as time goes on, and we as a nation can’t rely on it. As a member of the Debt-Paying Generation that is going to be taking the brunt of this and other fiscal failures of the federal government of the United States, I implore Congress and the voters to begin making the changes necessary to prevent young Americans from being forced into a lifetime of low employment, high taxes and a Ramen Noodle-filled retirement.

 

 

 

 


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No offense intended to the guest bloggers, but my guess is Allahpundit will retire from blogging again shortly after the November election.

fiatboomer on June 22, 2012 at 6:05 PM

NEWS FLASH………

The Social Security Trust Fund is bankrupt because it never existed in the first place.

bgibbs1000 on June 22, 2012 at 6:07 PM

Better yet.

What Trust Fund?

bgibbs1000 on June 22, 2012 at 6:08 PM

Dustin are you sure it shouldn’t read,

The Social Security trust fund will start going bankrupt in 123……..

Bmore on June 22, 2012 at 6:08 PM

Let it die, as all Ponzi schemes must do.

BobMbx on June 22, 2012 at 6:09 PM

Or is it?

The Social Security trust fund will start going bankrupt in 3,2,1………

Yep thats better ; )

Bmore on June 22, 2012 at 6:09 PM

“Thank you for flying Bloated Government Program Airways! Should you survive the fireball, we hope you fly with us again!”

squint on June 22, 2012 at 6:12 PM

“Unfortunately, Congress appears unwilling to make any significant changes to Social Security…”

Now that’s just crazy talk…

Seven Percent Solution on June 22, 2012 at 6:12 PM

Longest lasting Ponzi scheme in history.

antipc on June 22, 2012 at 6:15 PM

It can’t be. Social Security for Dummies; 2012 said it is not a Ponzi sceme and is solvent.

davidk on June 22, 2012 at 6:17 PM

Darn good thing we kept Bush from implementing those individual investment accounts and reforming SSI.

-Dems

antipc on June 22, 2012 at 6:22 PM

I implore Congress and the voters to begin making the changes necessary to prevent young Americans from being forced into a lifetime of low employment, high taxes and a Ramen Noodle-filled retirement.

Why don’t you implore your buds to take charge of their own futures?

Looking to government is what got you into this mess. And nobody in government has the courage to make a stand.

davidk on June 22, 2012 at 6:27 PM

‘How did you go bankrupt?’ Bill asked.

‘Two ways,’ Mike said. ‘Gradually and then suddenly.’

novaculus on June 22, 2012 at 6:31 PM

The first indication of a massive fraud being perpetuated is whenever gummint calls anything a “trust” fund.

viking01 on June 22, 2012 at 6:31 PM

Nice to know the roughly 14K I put into SS is protected and well invested. / P.S. Where are all the trolls on this one? Never mind……………..

Bmore on June 22, 2012 at 6:31 PM

Yearly for those of you who don’t already know. In my case times 30 years.

Bmore on June 22, 2012 at 6:32 PM

The Social Security trust fund will start going bankrupt in 2013

Brought to you by the people that have given us:

Solyndra.

Amtrak.

Postal Service.

Department of Education.

Detroit, California, Louisiana and Cook County, IL.

BlaxPac on June 22, 2012 at 6:33 PM

How about we start with taking all retirement funding and benefits away from Congress?

INC on June 22, 2012 at 6:34 PM

Is this surprising?

ORconservative on June 22, 2012 at 6:35 PM

Johnson gutted the fund to fund his war on poverty programs. Governor Cuomo gutted the comp. fund in New York State because we in NYS are headed to the same condition as California. If you had an injury money was put into this comp. fund in case it was needed for a compensation case but the fund is gone. Many compensation lawyers have left the State. Patients that were being treated for comp cases are out of luck and they are blaming the doctors. The doctors are losing the patients because the comp money is gone.

mixplix on June 22, 2012 at 6:39 PM

1. World’s smartest man has chopped the ONLY means of funding SS for 2 years.

2. World’s brightest and super scary person on economic policies has shafted the economy for 31/2 years.

3. World’s most fiscal budget hawk has dramatically boosted federal spending.

4. Universe’s most genius man in history has effectively made SSDI the new welfare.

5. Light bearer and healer of all things has dropped 11 million people out of the work force.

Quite frankly I’m surprised that the famous lockbox hasn’t gone into the red. So surprised that I think it probably has.

jukin3 on June 22, 2012 at 6:41 PM

Tar, feathers, apply as needed. No politician working or retired should get more than that provided the public. Most all of them have profitted greatly from their time receiving a public provided wage.

DanMan on June 22, 2012 at 6:41 PM

How about we start with taking all retirement funding and benefits away from Congress?

INC on June 22, 2012 at 6:34 PM

Great idea, but unless you have magic powers, I don’t see that happening any time soon.

squint on June 22, 2012 at 6:42 PM

So what if it does? It’ll just continue to run on empty and the checks will keep getting printed. Seems to be the way D.C. works anymore.

Dr. ZhivBlago on June 22, 2012 at 6:42 PM

If you criticize SS, you criticize the hardest working generation evah! They built the Hoover Dam on the Moon and how dare you suggest SS should be changed!

/ss

antisense on June 22, 2012 at 6:42 PM

the Bush Administration and conservatives pushed for the conversion of Social Security into 401ks and other private wall street investment products. Can you *imagine* what would’ve happened in 2008 if those efforts had succeeded?

libfreeordie on June 22, 2012 at 10:11 AM

Chuck Schick on June 22, 2012 at 6:46 PM

If you criticize SS, you criticize the hardest working generation evah! They built the Hoover Dam on the Moon and how dare you suggest SS should be changed!

/ss

antisense on June 22, 2012 at 6:42 PM

Yeah, they do indeed seem to have achieved Sacred Cow status.

But, I don’t think they thought that their entire retirement would be based upon SS, nor did they think politicians would pilfer it for other social programs.

Dr. ZhivBlago on June 22, 2012 at 6:48 PM

Yet liberals still trust the government to run our health-care. Wake up liberals and stop being so damn foolish. They can’t and they shouldn’t.

Conservative4Ever on June 22, 2012 at 6:51 PM

the Bush Administration and conservatives pushed for the conversion of Social Security into 401ks and other private wall street investment products. Can you *imagine* what would’ve happened in 2008 if those efforts had succeeded?

libfreeordie on June 22, 2012 at 10:11 AM

I know, I know….don’t feed it. I only have two words….

Dumb a$$!

freedomfirst on June 22, 2012 at 6:53 PM

Also, epiphany: Everyone who states “I paid in, I deserve what I put into it” is missing the point.

You aren’t getting back what you put it. How does the worker benefit from them taking 12.4% of their income to give it back when they retire? Why not just let you keep it so you can invest it wisely? For instance, in a bond fund that returns 5-8% a year.

Clearly people get out more than they put in, which is why the government needs participation to be mandatory and ever increasing. If ever people are allowed to opt out it would be the end of the program, period.

antisense on June 22, 2012 at 6:53 PM

I HAVE THE SOLUTION!

Instead of buying gifts for a wedding, birthday, or for your kids at Chistmas or from the “tooth fairy”, send that money to the government to put toward Social Security! Problem solved.

The Rogue Tomato on June 22, 2012 at 6:53 PM

We can sell China some aircraft carriers, or some western oil leases.

AshleyTKing on June 22, 2012 at 6:54 PM

NEWS FLASH………

The Social Security Trust Fund is bankrupt because it never existed in the first place.

bgibbs1000 on June 22, 2012 at 6:07 PM | Delete | Delete and Ban

Very true. I will state until my dying breathe that we NEVER had a surplus during the Clinton administration, it was ALWAYS balanced on the Social Security payments. Both parties have been winking at each other for decades as they passed this parlor trick off as “surplus”.

Well, now we’ll get to see what a REAL deficit is like, as if 1.6 TRILLION isn’t enough.

itsspideyman on June 22, 2012 at 6:54 PM

See what can happen…….this is why you serfs can’t be trusted with your own money.

/

antipc on June 22, 2012 at 6:55 PM

Yay socialism!

tom daschle concerned on June 22, 2012 at 6:56 PM

NEWS FLASH………

The Social Security Trust Fund is bankrupt because it never existed in the first place.

bgibbs1000 on June 22, 2012 at 6:07 PM | Delete | Delete and Ban

Exactly. To be more precise, Social Security went bankrupt in 2010, the second it stopped taking in more than it pays out.

Up until 2010, the so-called SS Trust Fund took in more $’s than it payed out. The Trust Fund in turn lent out the excess funds to the Federal Government, which spent it. That’s why there are two components to the gov’t debt numbers: money the government has borrowed from itself, and money it has borrowed from the public in the open market.

That is why the so-called shrinking deficits claimed by Clinton/Gingrich were hogwash. During that period, money borrowed from the public did decline drastically. But total debt continued to climb, because the gov’t was borrowing heavily from the SS Trust Fund.

The so-called “assets” of the SS Trust Fund are loans, IOU’s, just as bank loans are considered assets, and not liabilities, to the banks.

Remember, banks only keep a certain small percentage of the funds deposited on hand (called reserves) to cover daily withdrawals by depositors. They lend out the rest. If every depositor shows up at a bank to withdraw their deposits, there would be a run on the bank. The bank would have sell assets and call in loans to cover the withdrawals. It would likely go bust.

What we have now is a “run” on SS.

Now every penny spent for SS not covered by SS taxes must be borrowed from the public, because the gov’t is still running massive deficits, and has no surplus funds to pay back the Trust Fund.

It’s simple math. There simply aren’t enough workers in the system to cover workers leaving/retiring from the system.

It’s going to get ugly.

Mr. Arkadin on June 22, 2012 at 6:56 PM

Where’s Herman Cain and the Chilean models?

Fallon on June 22, 2012 at 6:56 PM

NEWS FLASH………

The Social Security Trust Fund is bankrupt because it never existed in the first place.

bgibbs1000 on June 22, 2012 at 6:07 PM | Delete | Delete and Ban

Better yet.

What Trust Fund?

bgibbs1000 on June 22, 2012 at 6:08 PM

Did Allahpundit approve your use of facts? Because we can’t have a conversation if you’re going to tell the bald truth right from the gate.

platypus on June 22, 2012 at 6:59 PM

♫♪ Whaaaaaat’s love trust got ta do with it? ♪♫

viking01 on June 22, 2012 at 7:00 PM

Seriously, you know that 2% FICA holiday reduction? How about that reduction gets added back in, but now that 2% goes to fund a private retirement account for each taxpayer, easing into the Chilean model?

Fallon on June 22, 2012 at 7:03 PM

Sad thing is, this report wont gain enough traction in the MSM until 2013.

IF (Nice big if there) we are lucky, and the fiscal conservatives are able to get a firm control of the Congress we may still be able to save a good chunk of the economy from meltdown by privatizing as much of the system as possible…this should diffuse most of the pain we have had from the last 4 years.

2x IF, we go this route, and don’t cut our own throats in regards to the DoD budget, we should be able to toss in a reasonable modest downsize in the Federal government in all non-Defense/Law Enforcement positions, including support agencies.

Close the Department of Education. Fold certain bureaucratic departments into sister agencies and eliminate the stovepipes. All Quasi-Federal agencies either become fully part of the government (P/L sheets voted on by Congress) or be closed…so in that case, the Post Office will be a shadow of what it is now, and Amtrak had better start showing a profit or move over for Conrail, Richard Branson, or even Mitsubishi Heavy Industries to come in and run the damn system better.

If this country is hit by another economic water-slide like we’ve been put through already via having to borrow more to prop up SS & SSI/SSDI, we will WISH it was a replay of the 1970′s…it’ll be more like the 1930′s.

BlaxPac on June 22, 2012 at 7:07 PM

Fallon on June 22, 2012 at 6:56 PM

I think that was healthcare? However, I must confess to liking the Chilean models. ; )

Bmore on June 22, 2012 at 7:09 PM

Nice to know the roughly 14K I put into SS is protected and well invested. / P.S. Where are all the trolls on this one? Never mind……………..

Bmore on June 22, 2012 at 6:31 PM

Yearly for those of you who don’t already know. In my case times 30 years.

Bmore on June 22, 2012 at 6:32 PM

Yeah, and it makes that lovely little accrual sheet the SS sends me every year with the amounts I’ve “earned” over my working life, starting at age 15, even more meaningless.

Oh, well. It’s only money. /

PatriotGal2257 on June 22, 2012 at 7:09 PM

Fallon on June 22, 2012 at 6:56 PM

My mistake, I still have no issue with Chilean models however. ; )

Bmore on June 22, 2012 at 7:11 PM

Oh, well. It’s only money. /

PatriotGal2257 on June 22, 2012 at 7:09 PM

Yeah, at least its not Nationalized healthcare or something, cause if it were blood well……………..

Sorry about the ad. ; )

Bmore on June 22, 2012 at 7:19 PM

And pssssst … guess what? The medicare numbers make this SS funding question to be chump change.

Just because the pols say we aren’t bankrupt doesn’t mean we aren’t. Under private accounting rules both programs SS and medicare would be underfunded – and criminally so, with their sponsors subject to lawsuits and jail time. Not an overstatement – a fact.

Zomcon JEM on June 22, 2012 at 7:22 PM

Social Security = Government sponsored theft/Ponzi Scheme.

GarandFan on June 22, 2012 at 7:23 PM

The Social Security trust fund will start going bankrupt in 2013

the Bush Administration and conservatives pushed for the conversion of Social Security into 401ks and other private wall street investment products. Can you *imagine* what would’ve happened in 2008 if those efforts had succeeded?

libfreeordie on June 22, 2012 at 10:11 AM

ROFL! You better just stop digging before you end up in China. You are CLEARLY out of your league on this site!

dominigan on June 22, 2012 at 7:24 PM

The SSA system is a tax, not a ‘trust fund’. That was determined under Helvering v. Davis… 1937.

You have no real property in SSA, it is a system of payments that is voluntarily done by Congress. This was figured out in Flemming v. Nestor… 1960.

SSA money came in as taxes.

Congress spent the money, a portion of which was used to buy bonds, which circulated that cash right back into the Treasury to be spent. In other words those SSA bonds can only be paid out from current revenue.

SSA revenue went under outgo around 2010.

It is not a question of ‘if’ SSA rolls and burns, but when.

Back in the ’80′s when we all learned about the nature of SSA and it was going to go under, and that like all government projections the ones given were extremely rosy… if you factored in SSA to your fiscal future, you were making a bet. The odds were against you the younger you got that there would even BE an SSA system left.

Government does not ‘invest’: it taxes and spends.

YOU can invest as an individual and that means you take on risks and seek rewards. Today with modern communications and fractional shares in diversified funds, the ability of the common man to invest is relatively simple, unlike the 1930′s. You have more power in your PC and standardized accounting packages than Carnegie EVER HAD. More than all the tycoons and barons and captains of industry COMBINED up to the 1970′s. That is a few hundred dollar PC, networking, and research you have at your fingertips which is unrivaled in all of human history.

SSA was designed for an era long gone, and now dead.

Perhaps it is time to do away with such an unwise scheme and others like it before they impoverish us all? If you are surprised or in denial about the state of affairs of SSA, then you haven’t been paying attention for decades and reality will come to bite you. And HARD. You still have time to prepare… but that is now measured in years, not a couple of decades, and perhaps less than that. SSA is not a social compact, it is mere legislation turned into law. That is the sum total of it, not some grandiose guarantee: it is NOT WRITTEN IN STONE.

The choice is yours – to accept your liberty and the risks that come with it and a chance at a better future or a future of poverty and despair, where all the things promised you will no longer be there. You get that latter either way… better to control its implosion and help the truly needy and accept that your life is in your hands than to let government take control of your life and enslave you to it. That is your choice. Live free or as a slave to government. Best choose quickly as your time is running out.

ajacksonian on June 22, 2012 at 7:26 PM

Bmore on June 22, 2012 at 7:19 PM

ROFL!

I just closed my eyes during the ad. LOL

PatriotGal2257 on June 22, 2012 at 7:26 PM

It’s simple math. There simply aren’t enough workers in the system to cover workers leaving/retiring from the system.

It’s going to get ugly.

Mr. Arkadin on June 22, 2012 at 6:56 PM

Liberal Babyboomers: “Hmmm… Maybe we shouldn’t have used Roe v Wade to kill off 50 million Social Security funders… now who’s going to support us?”

dominigan on June 22, 2012 at 7:28 PM

freedomfirst on June 22, 2012 at 6:53 PM

ROFL! Great minds think alike! I can’t believe the idiocy that libfreeordie spouted.

I would happily convert all of my SS/Medicare taxes into 401K/HSA investments! And I’m in my 40s!

dominigan on June 22, 2012 at 7:32 PM

Where’s Nana’s bailout?

Philly on June 22, 2012 at 7:43 PM

…not the Governor… Perry Ponzi scheme!

KOOLAID2 on June 22, 2012 at 7:50 PM

ajacksonian on June 22, 2012 at 7:26 PM

An absolutely terrific comment. Very well said.

PatriotGal2257 on June 22, 2012 at 8:08 PM

Can you imagine what wages would be if you and your employer didn’t have to pay into this criminal and unconstitutional ponzi scheme?

15% higher? 20% higher?

tom daschle concerned on June 22, 2012 at 8:26 PM

What me worry? Social Security can never go bankrupt because it has no guaranteed benefits. The Supreme Court has already ruled that you are entitled to nothing since Congress can reduce these benefits or even end this entitlement program by merely changing the law.

Supreme Court Case: Flemming vs. Nestor

There has been a temptation throughout the program’s history for some people to suppose that their FICA payroll taxes entitle them to a benefit in a legal, contractual sense. That is to say, if a person makes FICA contributions over a number of years, Congress cannot, according to this reasoning, change the rules in such a way that deprives a contributor of a promised future benefit. Under this reasoning, benefits under Social Security could probably only be increased, never decreased, if the Act could be amended at all. Congress clearly had no such limitation in mind when crafting the law. Section 1104 of the 1935 Act, entitled “RESERVATION OF POWER,” specifically said: “The right to alter, amend, or repeal any provision of this Act is hereby reserved to the Congress.” Even so, some have thought that this reservation was in some way unconstitutional. This is the issue finally settled by Flemming v. Nestor.

Laurence on June 22, 2012 at 9:08 PM

Liberal Babyboomers: “Hmmm… Maybe we shouldn’t have used Roe v Wade to kill off 50 million Social Security funders… now who’s going to support us?”

dominigan on June 22, 2012 at 7:28 PM

This is also the big reason for both party establishments (really, the two wings of the Gov’t Party) to push for amnesty for the ten million or so illegals in the country. Get these people, most of whom are young and healthy, into the system to provide payroll taxes for the bankrupt SS and Medicare systems.

Mr. Arkadin on June 22, 2012 at 9:22 PM

Never thought we’d need SS because we worked all our lives and invested “wisely.” Well what a joke on us: Our retirement accounts haved tanked big time. Now we’re living on SS. If that goes, what to do? Problem solved by Death Panels?

winfield on June 22, 2012 at 9:25 PM

You pay 1.5 cents and your employer pays 1.5 cents.

Did no one ever think that the employer is going to take the 1.5 cents from you, to pay to the feds???

Really, the only way out is to stop paying taxes, period.
I wish to stop participating in this crap now.

My wifes friend who was drunk when she had a car wreck that shattered her pelvis, 6 years and 12 operations later she is finally on SSD. And makes more than she did at wally world.

SS is over 60% of the budget expenditures alone.

orbitalair on June 22, 2012 at 9:48 PM

Think way back…all the way to last August, on separate occasions the media asked Obama and Geitner if the debt ceiling wasn’t raised, would Social security checks go out. They both answered no, that was an admission that social security payments were coming out of borrowed funds. Social Security was bankrupt then.

Clinton’s imaginary four balanced budgets beg the question, if there was a surplus why was the Treasury selling T-bills? The Clinton Surplus was as much an accounting fiction as the Social Security trust fund.

Every word out of every Democrats mouth for the last 50 years has been a lie…Republicans? pretty much the same.

halfbaked on June 22, 2012 at 9:58 PM

Approaching Six Trillion Dollars flushed down Obumbo’s Marxist Democrat toilet in 3.7 years. What really is disturbing though: there are people that still want to reelect this Marxist Democrat tool.

aposematic on June 22, 2012 at 10:07 PM

I don’t expect to see one thin dime from my SS. Luckily I saw this coming years ago and have been planning for many years. I knew it would be broke back in the 90s. I just wish I could opt out at this point. I would gladly give up on my entire SS account if I could stop paying any more today. I know I will never get a penny of it back.

Dollayo on June 22, 2012 at 10:49 PM

Social Security = 100% social 0% security

Dollayo on June 22, 2012 at 11:17 PM

This is also the big reason for both party establishments (really, the two wings of the Gov’t Party) to push for amnesty for the ten million or so illegals in the country. Get these people, most of whom are young and healthy, into the system to provide payroll taxes for the bankrupt SS and Medicare systems.

Mr. Arkadin on June 22, 2012 at 9:22 PM

Which works right up until those people demand their share of Social Security. Low-wage earners are a nightmare for the long-term health of the programme. What you need is more middle class and upper-middle class earners, putting more into it than they get out of it.

Roxeanne de Luca on June 23, 2012 at 12:52 AM

Which works right up until those people demand their share of Social Security. Low-wage earners are a nightmare for the long-term health of the programme. What you need is more middle class and upper-middle class earners, putting more into it than they get out of it.

Roxeanne de Luca on June 23, 2012 at 12:52 AM

What we need is to end of this bankrupt social security ponzi scheme once and for all and not find more people who will put more into it than they get out of it.

Dollayo on June 23, 2012 at 3:26 AM

halfbaked on June 22, 2012 at 9:58 PM

Obama and Gietner were just showing their ignorance while spreading fear. Paying Social Security benefits from the non-existent trust fund is not effected by the debt ceiling. Borrowing money to “redeem” trust fund money merely moves debt around without increasing it: the increase in debt by borrowing is exactly offset by the decrease in debt by reducing the book keeping entity known as the SS trust funds.

The sad thing is that no one in the media was able to call them out on their lying, fear mongering.

Laurence on June 23, 2012 at 8:17 AM

If you get your money directly from the Social Security Office be sure to bring a very large bag to receive your check.

You will be converted to Pesos or Euros.

If you get a check, insure your deposit includes a minus sign in front of it and do add but subtract it from your balance.

MSGTAS on June 23, 2012 at 9:01 AM

btw, that plane needs to be burning $100 bills not $1 bills….

orbitalair on June 23, 2012 at 9:08 AM

That is a good historical overview, but please don’t perpetuate the myth of a “trust fund.” The grand total of money saved from prior contributions to fund future obligation is — wait for it — $0.00.

Zero.

eMatters on June 23, 2012 at 10:35 AM

Never thought we’d need SS because we worked all our lives and invested “wisely.” Well what a joke on us: Our retirement accounts haved tanked big time. Now we’re living on SS. If that goes, what to do? Problem solved by Death Panels?

You will receive every penny promised you. Unfortunately, because the government has to borrow to pay retirees as well as everything else, and last year (as an example) $800 Billion was printed out of thin air by the Federal Reserve and issued, unbacked, to purchase government debt, the resulting destruction in the dollar’s purchase power will have your promised SS benifits affording the excact living standard that destitute elderly enjoyed prior to Social Security.

The only way we make it year to year is by printing money to keep service on our existing debt manageable. Without printing there would not be enough money in the world to borrow over a Trillion dollars each and every year, and even if there was we’d be paying well over 10% to “corner the dollar market.” That would drain the planet of capital (where else can you get such a return guaranteed?) and hit Uncle Sam on the tax collecting side, leading to even more debt and more printing.

At some point it is inevitable that government will enlist the legions of unemployed to build tens of millions of housing units for the elderly and provide those elderly with subsidised foodstuffs and subsidized utilities, because the money that SS pays out will not sustain an independent lifestyle, and certainly won’t allow shopping at a traditional grocery store for proceessed and packaged food that costs 50 times the actual food content.

shuzilla on June 23, 2012 at 10:43 AM

At some point it is inevitable that government will enlist the legions of unemployed to build tens of millions of housing units for the elderly…

Herding the elderly into such housing would be just another form of death panels.

Laurence on June 23, 2012 at 11:35 AM

How about…you get all your money back, all you’ve paid in over the years, then we start means testing.
Does that sound fair?
Raise the retirement age to 70 and I’d do it NOW not AFTER the whole huge baby boom retires for heaven’s sake.
No early retirement at all, what is that about anyway?
Medicare also starts at 70. Insurance companies would step in with programs right away.
Get all the disability payments into a different program. It’s stupid to have them combined in SS.

MAC1000 on June 23, 2012 at 11:57 AM

Herding the elderly into such housing would be just another form of death panels.

Laurence on June 23, 2012 at 11:35 AM

In the eyes of the perpetually-entitled yet never grateful – perhaps.

shuzilla on June 23, 2012 at 12:15 PM

Liberal Babyboomers: “Hmmm… Maybe we shouldn’t have used Roe v Wade to kill off 50 million Social Security funders… now who’s going to support us?”

dominigan on June 22, 2012 at 7:28 PM

Not quite. SS was doomed the moment the Baby Boom ended…Roe just speeded up the inevitable.

MelonCollie on June 23, 2012 at 2:58 PM

“Events, my dear boy. Events.”

This was not expected to take place until 2017, though to be fair to the trustees, the recession greatly impacted Social Security’s finances.

Yes, things do have a habit of popping up. What was it that Moltke said about battle-plans never surviving contact with the enemies? (Or Burns in re mice/men?)

Tzetzes on June 23, 2012 at 11:53 PM