March 19 (Social Security) Social Security is beginning to run out of time. The talk of social security is okay until 2040 is utter nonsense. The real problem is going to happen in about a decade or so. This problem will start when they start to take in less money then they give out.
The $2.3 Trillion trust fund owned by Social Security is nothing but Treasury securities. Treasury securities are the safest thing you can hold in a retirement account but Social Security's Treasuries won't help cover the program's shortfall. The shortfall comes because having one arm of the government (The treasury) loan another part of the government (Social Security) money does not cover all of the governments bills. Say for example that Social Security calls the Treasury and says they need $15 billion of securities to cover benefit checks. The only way that they can pay them this money is for the rest of the government to cut their spending by $15 billion. Them cutting spending, collecting more taxes, and borrowing money from another country are all things that they could do to pay for the Social Security bill. These are also things we would do with no trust fund. Therefore, the trust fund we have in our government is not making it any easier for the government to pay for Social Security's shortfalls.
The whole idea of Social Security being okay until 2040 is bull. The real problem is gonna come in about a decade. Therefore the government needs to find a way to help this problem other than a trust fund because the trust fund is already doing much of nothing for them. If they do not fix this problem people who have been paying social security since they got their first job and expecting to use it in about a decade are going to be screwed. This will be unfair to every American who does not receive what they deserve in about a decade.
No comments:
Post a Comment