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This article states that for the first time Social Security is now paying out more than it is taking in. This means the government will either have to raise taxes (doubtful in this economy) or borrow the difference. While many will argue that more borrowing is an easy solution, and that government debt never has to be repaid, the fact remains that the debt does have to be serviced. If the government raises taxes to service debt, it has a negative impact on the economy. If it simply prints the money to service the debt, it looses credibility in the dollar, and risks hyperinflation. So what is the solution?
This article states that for the first time Social Security is now paying out more than it is taking in. This means the government will either have to raise taxes (doubtful in this economy) or borrow the difference. While many will argue that more borrowing is an easy solution, and that government debt never has to be repaid, the fact remains that the debt does have to be serviced. If the government raises taxes to service debt, it has a negative impact on the economy. If it simply prints the money to service the debt, it looses credibility in the dollar, and risks hyperinflation. So what is the solution?
The more likely solution is that the nominal value of social security payments increases but the real value of the payments decreases.
I can imagine in 10-15 years a $3,000 per month average check that covers basic food needs, 2,000 or so calories a day, and that's about it.
Other solutions, like a dismantling of the system, are less likely.
The ideal solution is such a great increase in average productivity that the real value of the payments remains at least constant. Not impossible, but I wouldn't hold my breath.
I don't understand why they're pushing for the trillion dollar "Obamacare" to provide health care for everyone when they can't afford to pay for social security and medicare. Obamacare will just go broke eventually along with SS and medicare.
This article states that for the first time Social Security is now paying out more than it is taking in. This means the government will either have to raise taxes (doubtful in this economy) or borrow the difference. While many will argue that more borrowing is an easy solution, and that government debt never has to be repaid, the fact remains that the debt does have to be serviced. If the government raises taxes to service debt, it has a negative impact on the economy. If it simply prints the money to service the debt, it looses credibility in the dollar, and risks hyperinflation. So what is the solution?
The solution can be summed up in one word: Sacrifice. On the part of everyone.
Since not nearly enough people are willing to do that, we are headed toward a true Great Depression.
The solution can be summed up in one word: Sacrifice. On the part of everyone.
Since not nearly enough people are willing to do that, we are headed toward a true Great Depression.
that is probably the bottom line. it does seem that it is always some other group which needs to be taxed, or someone's else's services which need to be cut.
i found an interesting article on social security which had some obscure little facts that i never heard before, including on the numbers themselves:
I believe that social security should be done away with. John Stossel calls it the greatest ponzi scheme in the world. We pay into an investment, it pays out to other people, and when it is our turn the scheme will have grown to large to continue. Will....IT HAS. The government has been taking our money for social security and spending it everywhere else. And now we dont have any for us. We should, instead, have private accounts that we have to automatically pay into, that way if the government takes it, we see that they take it. As for people who are already on social security, they should get to stay on it, as well as people 55 or older. But anyone else should start saving there own money into roth ira's and become dependent upon themselves
Scial security is proably the safest of teh entitlemnets from political deqath. There are tons of other programs that will go down the tubes first becasue like in the last commissio no one wants to do anything to endenger their careers.Medicaid and medicare are much mroe likely to change especailly medicaid.Its all in the politics.;with medicaid no voter has any money in the game really.
Expect to see...
- the increase of the wage cap paying SS.
- an increase in retirement age for full SS.
- means testing for SS benefits.
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