Social Security is going broke even though we hit 300 million?

[Wcross]

Ok, I am not the sharpest tool in the shed so bear with me. As I understand it we just had our 300 millionth person born today. Why is the social security trust fund still going broke with such an increase of people? As I understand it the trust fund is a bit of a ponzi scheme in which new investors pay off older ones. We have added 100 million new "investors" over the past 40 years, why is the fund floundering?

[magellan]

1. Because the government has been looting SS since GHWB

Any extra money that's gone into the trust fund has been used up and an IOU left in its place, which the government has no intention of making good on.

[Kagemusha]

3. Your explanation's a combination of brevity and accuracy.

I wish that didn't have to impress me but, there's so much junk out there about Social Security that your rock-solid grasp of the issue does indeed make a strong, positive impression.

[magellan]

7. Thanks, Kage

Coming from you that means a lot to me.

There's a very easy to understand page about it here: http://www.whatreallyhappened.com/ARTICLE2/budget.html

Essentially we done been robbed. (Again.) :mad:

[whistle]

2. Investors are not paying their fair share, should be taxed on all

...income

[sofa king]

4. Too many people about to cash in.

The amount that most people pay into Social Security is quite small, and now with the disproportionately large sector of the population known as Baby Boomers start to retire, it's going to be sort of like when all the air conditioners are turned on in my falling-down house at the same time--the lights start to dim.

[Pugee]

5. Because it has been poorly run and money taken out.

Actually the milleniums (born 1980-2001) outnumber the baby boomers. On the other hand, pay seems to be dropping, we are creating lots of McJobs for them. My quarterly Missouri Lagers (retirement) newsletter had an interesting article about why it should only cause a ripple when boomers retire and not the big crash they keep threatening.

[sofa king]

6. That, at least is somewhat comforting to know.

Thanks for the observation.

[zeemike]

8. The way I heard it was

That if something is not done by 2040 benefits will have to be cut, Now that is not the same as going broke. And by the way in 2040 most of us baby boomer's will be dead anyway so I fail to see the problem.