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Will they?

Of course they will!  The Social Security Actuarials have been warning about the impending solvency issue since at least the early 1980s, and they have indicated that unless something is done, Social Security would become insolvent between 2037 and 2041.

The last 5 Trustees Reports have indicated that Social Security’s Old-Age, Survivors, and Disability Insurance (OASDI) Trust Funds would become exhausted between 2037 and 2041 under the intermediate set of economic and demographic assumptions provided in each report. If no legislative change in enacted, scheduled tax revenues will be sufficient to pay only about three fourths of the scheduled benefits after trust fund exhaustion. Many policymakers have developed proposals and options to address this long-range solvency problem.

Congress hasn’t done more than minor adjustments over the past three decades that has done nothing more than move that date back in incremental steps.  Yet those incremental steps have not, and rightfully could not, do anything in regard to the massive retirement of baby boomers that will hit its peak in the coming decades.  It is common sense that unless something is done to actually fix the problem that is Social Security, this will either bankrupt the nation or force the loss of benefits.

Currently there are 3 people paying into Social Security for every 1 person collecting benefits.  But that figure will change as more Baby Boomers retire so that there will be less than 2 people paying in for every 1 person on retirement.  Math is a wonderful thing as it’s laws are immutable.  Either taxes will have to be raised in order to preserve then current benefits, or benefits will have to be cut.  Or some measure of both.  I suspect the retirement age will be raised again in addition.

That Congress has not done anything real and lasting to fix the impending doom is outrageous.  President Bush made serious attempts, yet for all his effort yielded nothing for it.  Congress was not then, and is not now, willing to make the hard decisions to fix it.  And have no doubt about it friends, Social Security is one of the reasons why the hasty Obama health care “reform” were and are so unwise.  People have a habit of only seeing what is directly in front of them and not thinking about the long term.  There can be no health care reform, on the level the Democrats are attempting, without putting our financial house in order first.

Isn’t it long since time we did that?

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