Question about the "social security crisis"

[sjr5740]

I understand the argument that after 2018 SS will be taking in less revenue than it pays out and that people are living longer so they are drawing from SS for a longer period of time. My question is why does this make SS go bankrupt?

The baby boomers (who are the impending crisis when they retire) had kids and although not enough to completely replace their population it is still a sizable population bulge in this age group. These kids are now just entering the workplace and will therefore be paying SS taxes. Is this accounted for in the SS projections and if not why not? It seems to me that if this trend continues there will be population bulges (when SS will run a surplus) and sinks (when it will run a deficit) and over the long run it will become cyclic and should even out with little gov't intervention.

Does this make sense?

Some background reading on boomers kids http://www.businessweek.com/1999/99_07/b3616001.htm

SJR

[papau]

1. It does make sense and is in the Actuarial projections - after 2030

SS demographics are stable as is the financial strain.

With same GDP growth as that assumed for private accounts, there is never a problem.

The only logical idea is the wage cap removal.

[imenja]

2. I don't think it does make it go bankrupt

That's one of Bush's lies. My understanding is that in the 2040s, we will have less available to pay obligations at that time (75-80% of promised payments) but that is a far cry from bankrupt. Bush's plan seems designed to make sure Social Security does go bankrupt. I expect in the long run population increases will provide more funds, as you say. Continued immigration may provide those increases in the sorter run. The American born population is actually decreasing. Our population growths come from immigration.

[CindyDale]

3. If it's bankrupt they think they don't have to pay back the money

they took.

Their aspiration is to be bankrupt slime with no responsibility. They should lose their credit and probably will.

[bryant69]

5. This is pretty accurate

In 2018 there will be more people drawing on Social Security than are paying into Social Security, so they will have to start drawing on the Social Security Trust Fund. The Social Security Trust Fund is invested in United States Treasuries.

But obviously since President Bush's budgetary policies have bankrupted us to a certain extent, it would be really nice (from his perspective) if he could convince everybody that he didn't have to pay that money back.

Bryant
Check it out --> http://politicalcomment.blogspot.com

[FloridaPat]

4. People are not living longer. This is another gov scam. The

life expectency is calculted on the number of children that reach the age of six. People who reach 50 years old have had the same life expectency for over 200 years. Pass the word.

Another item - they say in 40 years it will be totally bankrupt. That would put the Baby boomers over 100. More crap from the government.

[Yupster]

6. You mean

all the triple bypasses, and people quitting smoking and diabetic pumps hasn't extended the lifespans of retired people at all?

[FloridaPat]

8. How many retired people get bypasses? 300,000 people die each

year from smoking. If you're smoking by the time you 65, there is no reason to quit. Some people get expanded lifespans, but not many of the retired. Most just have SS and SS doesn't provide everything for everyone.

in 1900 there was hardly any heart disease. There was no emphasema before WW2. There was very little diabetes too. That was a disease of the rich. What happened since 1900? We're fatter & sicker then we were generations ago.

[Cleita]

7. According to many who know more about this than I do, is that

it doesn't put it in crisis. This is another manufactured crisis by the Bush administration to throw more taxpayer's money to the corporations who bought our President for us.