Social security woes in the USA. A change I can believe in.

USA continues cruisin for a bruisin with this news from the NY times:

Social security to see payout exceed pay-in this year

“This year, the system will pay out more in benefits than it receives in payroll taxes, an important threshold it was not expected to cross until at least 2016, according to the Congressional Budget Office.”

“Analysts have long tried to predict the year when Social Security would pay out more than it took in because they view it as a tipping point — the first step of a long, slow march to insolvency……….”

“Mr. Goss said Social Security’s annual report last year projected revenue would more than cover payouts until at least 2016 because economists expected a quicker, stronger recovery from the crisis. Officials foresaw an average unemployment rate of 8.2 percent in 2009 and 8.8 percent this year, though unemployment is hovering at nearly 10 percent.”

2 thoughts on “Social security woes in the USA. A change I can believe in.

  1. This is not the half of it. The SSA system encompasses a disability pass into the benefits program. This system takes virtually 95% of the administrative costs (actually a pitance) of SSA in the USA. The system is gearing to increase the roles of Social Security by 80% of the expected 3 million expected unemployed disability applicants. Guess what that will do to the payout ratio! The coming wave of demand accompanied by the decline in productivity caused by the ongoing depression and retirees will flood the government with political demands for entitlement benefits the USA cannot sustain with the other promises it is making. The Republican return will be faced with unmanagable problems and the US will bankrupt in 7 years. The consequent confiscatory taxes will drive 3-5 million to seek tax asylum in other countries. Guess where!

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