CBO: Social Security to Run $45 Billion Deficit in 2011

CBO: Social Security to Run $45 Billion Deficit in 2011

cnsnews.com

CNSNews.com) – The Congressional Budget Office (CBO) reports that Social Security will effectively run a $45-billion deficit in 2011 and continue to run deficits totaling $547 billion over the coming decade.

The admission comes in the CBO’s semi-annual economic review that projects federal spending, debt, and economic growth. In the report, the CBO also examines the impact of projected economic performance on the trust fund that nominally funds Social Security.

(visit the link for the full news article)

More evidence that Social Security is a Pyramid scheme. It depends on workers at the bottom of the pyramid to pay benefits to those retiring at the top of the Pyramid.

So the Government counts on a certain percentage of people dying before they reach the top of the Pyramid. This is why the baby boomers living longer is crashing the Pyramid.

“Excluding interest, surpluses for Social Security become deficits of $45 billion in 2011 and $547 billion over the 2012–2021 period,” the CBO reported.

This means that in order to pay benefits Social Security will need $45 billion more than it will collect in payroll taxes this year, and $547 billion more over the next decade.

However, the fund is not taking in enough money to pay out its obligations, nor will it for the foreseeable future, according to the CBO. Adding the interest owed by one government account – the general fund of the U.S. Treasury – to another – the Social Security trust fund – is merely an exercise in moving money from one part of the federal budget to another. It does not mean that there is extra money available to pay Social Security benefits.

In other words, Social Security is not taking in enough money in taxes to pay current or future benefits and instead will have to rely, in theory, on future federal borrowing to meet its needs.

cnsnews.com
(visit the link for the full news article)

what a ponzi scheme ! This will make madoff look like a walk in the park lol .

social secuirty who are they kidding really ? i guess the millions that are on the hope train for it . Good luck to them when # hits the fan

The Social Security program has 2.5 Trillion dollars in IOU's owed to it from all the times Congress stole - I mean 'borrowed' from it. Time to start cashing in those IOU's right? Too bad there's no money left!

reply to post by Matrix Rising


en.wikipedia.org...

Cut a bit from defense and we should be ok for awhile. Personally, I advocate a Tobin Tax.

en.wikipedia.org...

Of course, advocation of any tax will get you hate mail around these parts, but I find it repugnant that many are willing to let the elderly go without in the "richest" country on earth. Here is some old data concerning elderly poverty before and after social security: www.cbpp.org...

And no, there was little in the way of charity for the elderly before Social Security. Ever hear of the "Poorhouse" or "Poorfarm"? That's where the elderly and disabled ended up before Social Security. Either way we pay a cost. There has to be some kind of middle ground between the old eating dog food and Social Security.. Some of the elderly don't need Social Security, perhaps they should be cut off.

reply to post by antonia


Taxes will not cover this because you will stifle an economy that's already in the tank with over 9% unemployment. So if you raise taxes in a global economy when the economy is hurting you will just make matters worse.

Taking money from defense will not solve the problem because we're broke as Obama said on C-Span years ago yet he borrowed and spent like crazy. I don't mind cutting the defense budget but systems like Medicare and S.S. are broken systems.

They can't handle increase in life expectancy because there Pyramid schemes.

You fix it by raising the retirement age to 75 for people 40 and under like myself. You then allow them to invest half of their S.S. money into savings accounts that they can start to draw from at age 65. You also put a lockbox on money going into S.S. for everyone 40 and under.

You have to account for the increase in life expectancy when your dealing with Pyramid schemes. These programs need reforms not band aids.

Originally posted by Matrix Rising
reply to post by antonia

 

Taxes will not cover this because you will stifle an economy that's already in the tank with over 9% unemployment. So if you raise taxes in a global economy when the economy is hurting you will just make matters worse.

A Tobin Tax would have no effect on unemployment. A Tobin Tax is a 1% Tax on all stock trades, ETF's and Options-AKA Speculation. It's a sales tax on fat cat wall street boys.

My problem with social security (other than it is forced on us): since inflation is always rising there is a 100 percent chance that the money you get when you retire will be less than what you put in (that is if the entire system doesn't crash in the meantime).

I am sick of hearing that Social Security is going to go broke in 'this many' years.

They are in the red now, and have been for a long time.

Around my house, that means broke. Already broke.

When a government gets as big as ours, it should be able to pay a dividend every year, not stand there with an open hand.

reply to post by Matrix Rising


Time for the government to find a way to save money fast. What's the best way to knock off a few million elderly? Prescriptons, bad food, flouride and chemtrails might speed up the process a little.