AP says Social Security to 'go broke'

[quaoar]

The Associated Press has moved this misleading story and headline today -- saying SS will "go broke." Social Security will NOT go broke in 2041. That is when it will not have enough to meet current benefit levels and would have to trim benefits, assuming current conservative economic forecasts are correct.

Here is a link to a version of the story:
http://staging.hosted.ap.org/dynamic/stories/S/SOCIAL_SECURITY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2005-03-23-12-18-59

Social Security to go broke year earlier than predicted; political debate heated

By GLEN JOHNSON
Associated Press Writer

WASHINGTON (AP) — Social Security will begin paying out more in benefits than it receives in taxes in 2017, twelve years from now and a year earlier than previously estimated, trustees said Wednesday in a forecast adding fuel to the debate over changes President Bush wants.
The trustees estimated that the program, which is about to be inundated with baby boom retirees, would go broke in 2041, also a year earlier than in their prior annual report.
The Bush administration said both findings underscored the urgency of its effort to overhaul Social Security this year, in part by creating retirement investment accounts for younger workers. Democrats said the trustees’ report undercut the president’s efforts to portray the program as in immediate crisis.

[Clark2008]

1. Does it mention that it still will be able to pay out as much as 70

percent?

(You didn't provide a link)

We need to write them and explain this to AP and get them to change the headline.

[Clark2008]

3. Thanks for the update

with the link.

:hi:

[htuttle]

7. Actually, they won't even need to reduce benefits at that point (in 2017)

That's just the moment where they will probably have to start dipping into the Social Security Trust fund. You would only consider them 'broke' if you consider Treasury notes to be worthless (in which case, it's the entire US that's broke, not just Social Security).

[subterranean]

11. Bush wants you to believe Treasury notes are worthless

He doesn't call them Treasury notes, of course. He calls them "an IOU." Here, read this quote from one of his recent sales pitches:

"The government takes your money and spends it on other things and puts an IOU, a piece of paper, on your behalf, which may be worth something, and it may not be worth something."

Essentially he is saying that U.S. Treasury bills may be worthless when they come due -- which, as you say, would mean the entire U.S. government is broke. Great way to inspire confidence in the nation's future, George.

[BrklynLiberal]

2. On the radio right now I am hearing the news that SS will be fine until

2042 according to the latest government accountant report.

[quaoar]

5. The latest report moves the date up a year earlier

[Democrats_win]

4. The media blitz continues. Con men will not stop until your money is gone

[hector459]

6. Funny how when Bush can't get his way some report appears to justify his

position. Like, er, "yellow-cake."

[quaoar]

8. And here is a headline from Knight-Rider

Social Security is year closer to running out of money, trustees say

No, SS won't run out of money.

[Nikki Stone 1]

9. Sounds like the corporate media is rounding up support for this horrible

"reform".

[quaoar]

10. Seems the story also has some major factual errors

http://mediamatters.org/items/200503230006