On Social Security, We Should Have Heeded Bush

[ClydeR]

I guess President Bush's solution to the Social Security problem is starting to look pretty good to a lot of people right about now.


The deteriorating economy has made things worse. The date when the Social Security trust fund will start running deficits has moved closer by a year, to 2016, and the date of trust fund depletion has advanced by four years, to 2037. The Medicare hospital insurance trust fund is already running a deficit and will be exhausted by 2017. Furthermore, the size of the Social Security surpluses has shrunk, posing a problem for the government since it relies on these funds to help plug its deficits. Over the next seven years, the cumulative surpluses will be $157 billion instead of the previously estimated $454 billion, forcing the cash-strapped feds to borrow even more than they had expected.

More... (http://www.washingtonpost.com/wp-dyn/content/article/2009/05/13/AR2009051303467.html)

[radamanthys]

The situation is more dire than that. That's the press release.

[Keller]

Assuming that the (currently appreciating) SS Trust Fund were completely depleted, what percent of expected benefits would retirees receive if the only amounts used to pay their benefits were current collections?

(Hint: 70%).

[Proxy]

I find this whole thing amusing. Not because of whats happening but looking back and seeing how much the fed has bungled things to lead to this. Though the future prospects have me thinking the the majority of amusement in this regard has yet to be had.

[droit]

What would have happened if Bush had successfully privatized social security before the financial crisis struck? Serious question.

[Parkbandit]

I find this whole thing amusing. Not because of whats happening but looking back and seeing how much the fed has bungled things to lead to this. Though the future prospects have me thinking the the majority of amusement in this regard has yet to be had.

Name one program the government hasn't bungled up. Just one.

And now we want them to manage healthcare.

:rofl:

[Parkbandit]

What would have happened if Bush had successfully privatized social security before the financial crisis struck? Serious question.

Well.. he began the discussion about privatization of SS mid 2005. I would say not much.. since there is a limit to how much of your SS contribution you could actually manage at the beginning of the program.

[Rocktar]

Assuming that the (currently appreciating) SS Trust Fund were completely depleted, what percent of expected benefits would retirees receive if the only amounts used to pay their benefits were current collections?

(Hint: 70%).

And that would shrink every year due to more and more retiring and less and less paying in at current rates, thus necessitating, in some minds, a tax increase. I saw one prediction that says that in order to support current (2004 levels as that was when it was made) by 2040 we would have to pay 50% of our income right off the top. And that was not in inflation adjusted dollars. Now, the numbers might not be perfect, but the trend is clear.

[Keller]

And that would shrink every year due to more and more retiring and less and less paying in at current rates, thus necessitating, in some minds, a tax increase. I saw one prediction that says that in order to support current (2004 levels as that was when it was made) by 2040 we would have to pay 50% of our income right off the top. And that was not in inflation adjusted dollars. Now, the numbers might not be perfect, but the trend is clear.

Can you cite the study please?

[holocene]

What would have happened if Bush had successfully privatized social security before the financial crisis struck? Serious question.

The boom would have gone on for another five years and the resultant crash might have been something we never recovered from.

As it stands, we're not going to get over the current hump for another 18 months or so...even we've even seen the worst.