Thu 20 Aug 2009
Social Security Bankrupt In Two Years?
Posted by RichSlick under The Fed
[2] Comments
Sometimes I wonder why people can’t do basic math and figure these things out for themselves. You don’t need to understand fancy calculus to figure this out just basic addition, subtraction, multiplication and division. You don’t need to read economic reports, understand economic theories or models to get down to some basic realizations about what is going to happen over the next decade.
By Tommy Stevenson Associate Editor
Published: Tuesday, August 18, 2009 at 1:58 p.m.
Last Modified: Tuesday, August 18, 2009 at 2:07 p.m.TUSCALOOSA | Social Security could face a deficit within two years, according to U.S. Rep. Spencer Bachus who met with The Tuscaloosa News editorial board Tuesday.
…
“What this recession has done to Social Security is pretty alarming,” he said. “We’ve known for 15 years that we were going to have to make adjustments to Social Security, but we still thought that was seven or eight years down the road. But if things don’t improve very quickly, we’re going to be dealing with that problem before we know it.”
I’ve been exploring this problem for the last three years (here, here and here) and no one has yet to even attempt to offer a solution other than “things always bounce back” but that just doesn’t play in Peoria anymore.
August 20th, 2009 at 1:36 pm
With the market the way it is won’t part of the solution be that boomers will have to keep working longer since they won’t be able to retire? That will keep the number of workers vs the number drawing benefits in line a little. (I thought you posted something like that a couple of months ago.)
Other than that there also has to be a significant increase in the age at which benefits are paid out or a big push for younger people to have larger families / another baby boom (but that would take 20+ years to show results).
August 20th, 2009 at 6:13 pm
Well boomers will NEED to keep working but whether they’ll be able/willing to continue is another question. I have a hard time envisioning a 70 year old man working the line at an auto plant or flying an airplane or operating a forklift.
I don’t think Walmart has 70 million greeter positions but I might be wrong. So in the end, they might still work but only for low, low wages and that doesn’t help the social security system.
Besides, I also believe retirees have a disincentive for working while receiving Social Security; I think they lose part/whole of their SS if they work for wages full time.
The laws keep changing so I’m not sure where that puts boomers working….