We’re So Screwed

31 03 2009

.

We already know that the social security system will be in arrears when the bulk of the Baby Boomer generation retire. But the news has gone from bad to worse. Whatever surplus we thought there was in the mythic “social security fund” has just evaporated. THERE IS NO SOCIAL SECURITY SURPLUS!

 

P.S. I’m substituting for our Fearless Leader, Gio. He’s on a fact-finding mission, returning Thursday.

 

~Eowyn

 

……………………..

Social Security Surplus Already Gone

Tuesday, March 31, 2009 11:37 AM
By: Marc Davis

http://moneynews.newsmax.com/streettalk/social_security_surplus/2009/03/31/197950.html

 

Old boomers

Another victim of the recession has cashed in its chips — the Social Security surplus.

Expected to survive until 2017, according to many educated estimates, the stock decline has instead wiped the surplus out completely.

It happened in the blink of an accountant’s eye, as we were all paying attention to other serious financial problems, says Kevin Hassett of the American Enterprise Institute, commenting on this unamusing disappearing act in a column for Bloomberg.com.

“Social Security has for years been the near-term bright spot in the federal budget,” writes Hassett.

“Each year the program has raised $50 billion to $100 billion more in payroll taxes than it paid out in benefits.”

Opponents of Social Security reform often cited these surpluses as a good reason to postpone any attempt to fix the system.

But with American workers losing their jobs at an almost unprecedented rate, Social Security payroll revenues have declined substantially, says Hassett. Recession-driven early retirements have also increased, adding to the drawdown of funds.

Social Security reform has not been enacted, in part, because the Congressional Budget Office has been issuing excessively rosy estimates of surpluses, thus creating the unwarranted impression that the system is on firm financial ground, according to Hassett.

The decline means that the Treasury Department could be forced to borrow an additional $700 billion from foreign investors like China and Japan just as those investors seem unwilling to hold the trillions in bonds they already own.

“The Social Security trust fund, though technically in balance, is going to put huge pressures on taxpayers very soon,” warns Sen. Judd Gregg, the senior Republican on the Senate Budget Committee.

 


Actions

Information

11 responses

31 03 2009
Michele

Eowyn,

I emailed this article to Gio earlier today so he would see it and post it for everyone to see. Am posting it here, because if you or anyone else hasn’t seen it, I wanted you all to be aware of what the government wants to do with kids now.

All Teens Should Be Tested for Depression

http://www.msnbc.msn.com/id/29945008/

This is absolutely disgusting what they are planning, and it’s probably started by pharmaceutical lobbyists, so they can sell more antidepressants.

BTW, I am a gen-Xer (hate that label); anyone else an Xer here? We have always been cynical enough to know we would never have any sort of social security benefits. This is no surprise. Heard several months ago that the social security office files are filled with nothing but i.o.u.’s. It’s just wrong that people have been paying into this and will not even be able to get any money back. Imagine if the money had never been taken out in the first place. We’ve all been robbed. And I feel terrible for the older boomers who will need the social security checks.

31 03 2009
Eowyn

Thanks, Michele, for the link to the teen depression article!

I agree with you: This is yet another ploy to suck us further into the cradle-to-grave Nanny State.

31 03 2009
The Doktor

Oh yeah, Michele? How’d you like to be a ”Boomer”?

Blammo!!!!!!!

See? Aggravating as hell, isn’t it?

Doktor Rimshot

31 03 2009
Michele

I didn’t mean anything ugly with my statements. Do you mean you hate being called a boomer?

31 03 2009
Michele

Don’t blame you if you do. All these labels sociologists use to categorize people are ridiculous. We are all in this mess together.

31 03 2009
Michele

…well, whatever, nevermind 😀

31 03 2009
The Doktor

I’ve got to start using those smiley faces again.

31 03 2009
The Doktor

”P.S. I’m substituting for our Fearless Leader, Gio. He’s on a fact-finding mission, returning Thursday.

~Eowyn”

Fact finding, hell. He went fishing. Didn’t he? Come on, admit it!!

Just kidding, Gio!!!!

Doktor Dufus (Just ask my wife)

31 03 2009
Eowyn

Dok,

If our non-representatives in Congress can claim to be on a fact-finding mission when they’re actually on a junket, then Gio can too! 😉

Honestly, I have no idea what he’s doing, other than that he’s out of town.

31 03 2009
The Doktor

Again – 8)

31 03 2009
Michele

Have a nice day. 🙂

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s




%d bloggers like this: