There is a very good chance social security will never run out of money

Parent Cafe
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<p>So why do politicans, keep talking about it like it is?</p>

<p>Why are they talking about raising taxes and cutting benefits?</p>

<p>This has bugged me for a long time. I don’t like Obama’s proposals. I don’t like Bush’s. </p>

<p>Social Security doesn’t need saving.</p>

<p>It’s a bogus issue.</p>

<p>How come the following never comes up in debates or in political discussions?</p>

<p>[False-Alarm:</a> Personal Finance News from Yahoo! Finance](<a href=“http://finance.yahoo.com/focus-retirement/article/104852/False-Alarm?mod=retirement-preparation]False-Alarm:”>http://finance.yahoo.com/focus-retirement/article/104852/False-Alarm?mod=retirement-preparation)</p>

2

<p>Factor in Medicare and it becomes a much bigger issue. The projections I’ve seen show progressively higher transfers from general revenues and income tax revenue to maintain the current level of benefits. I’m 18 so maybe the paranoia affects me a little more…</p>

<p>[Social</a> Security, Medicare financing little changed in 2008 report UPDATE - Forbes.com](<a href=“http://www.forbes.com/markets/feeds/afx/2008/03/25/afx4813006.html]Social”>http://www.forbes.com/markets/feeds/afx/2008/03/25/afx4813006.html)</p>

<p>You can’t look at one without looking at the other, just looking at Social Security gives an incomplete picture. Medicare is projected to have shortfalls much sooner than Social Security, which may lead to increases in the income tax. One Social Security trustee expects the Medicare and Social Security portions of the income tax to climb to 26 percent by 2020, from 7 percent this year. We’re also running at a record deficit so the massive and increasing costs of these programs get looked at with extra scrutiny.</p>

3

<p>You can look at social security without looking at medicare.</p>

<p>Ninja, The viability of social security and medicare depend on the growth of the economy. When we read the dates where the money to fund these programs run out (and they are different dates), we need to know what the growth projections are. Otherwise, the projected dates where the money runs out are meaningless. </p>

<p>Like the dates in your link. What are the economic projections that lead to those dates? </p>

<p>You can bet that the growth projections in your links are very low. ;)</p>

4

<p>Thanks to Senators Harry Reid, Hillary Clinton and Barack Obama etc., President Bush was unable to attempt to fix the problem despite the great deal of political capital he was willing to expend. The Democrats were so affraid that Pres. Bush would get credit for fixing SS that they were willing to screw future generations. That is one reason why I am not a democrat.</p>

5

<p>There is no problem to fix. </p>

<p>The question is why do politicians want to raise taxes, cut benefits or gut the system?</p>

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<p>Medicare is an amendment to Social Security and nearly as expensive. The structures of the programs are similar in terms of funding, they both serve the same populace, and both are going to be strained as the baby boomers retire. They share trustees. They’re both going to be running in the red very soon.</p>

<p>I don’t know why Social Security reform gets more news coverage than Medicare, but both programs need to be changed. Medicare spending will probably hit a trillion dollars by 2020 and any strain on the budget by Medicare is going to cut into the money available to Social Security. Social Security will be putting out more money than it takes in with taxes in 9 years. That’s a pretty important issue. Not having a Social Security Trust Fund in 2041 when I turn 52 is also very bothersome.</p>

7

<p>Social security will only run out of money if the economy grows at low levels. </p>

<p>When social security is calculated to run out of money in 1941, low growth projections are used. </p>

<p>If higher growth projections are used and those projections come true, social security does not run out of money.</p>

<p>The projections the government uses to tell us social security is going to run out of money is 2.3% a year. </p>

<p>The economy can do 2.3% a year. That’s quite a bit lower than our past. </p>

<p>The government acts like the social security projections they use to tell us social security will run out of money around 2041 are facts. </p>

<p>They are not.</p>

8

<p>

Nope, there is a problem all right. Here is what the Social Security Trustees think:

</p>

<p>[Trustees</a> Report Summary](<a href=“http://www.ssa.gov/OACT/TRSUM/trsummary.html]Trustees”>Trustees Report Summary)</p>

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<p>I don’t care about the report because the report is based on future numbers. </p>

<p>Future lowball numbers.</p>

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<p>As long as there are enough undocumented immigrants paying into Social Security, it will do just fine. </p>

<p>Medicare is a different matter entirely.</p>

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<p>Even if they’re lowball numbers, I’d rather not have to bank on consistent economic growth for Social Security benefits. That’s not a risk I would want to take for myself or future generations, personally.</p>

<p>Then again, I’m 17.</p>

12

<p>So if the economy doesn’t grow faster than 2.3% per year and in 2041, I’ve paid into the system for 30-some years, am I supposed to ask the Federal government for a refund?</p>

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<p>Enderkin, if you’re 17, you should be very concerned that the government borrowed trillions of dollars of your money during the last three Republican Administrations for - nothing which benefitted you. That’s not “projections” - that’s historical fact. The interest we’re paying on that debt could solve the social security “crisis” except - ooops - we have to use it to pay interest on the Reagan/Bush/Bush debt.</p>

<p>Moral of the story: anyone under the age of 40 who isn’t a millionaire and who votes for a republican is what we call a “mark.”</p>