Social Security’s looming $32 trillion shortfall (That’s right 32 TRILLION)

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But hey, who cares? I mean I’ll be dead by the time Social Security implodes. I paid into it. I want my money. That most people take out far more in Social Security than they put in in a lifetime means nothing to me. I was promised Social Security and darn it I am going to get my check.

The grand kids can figure it out.

(From CNBC)

“We’re not broke in 20 years to 30 years, we’re broke now,” Kotlikoff said. “All the bills have been kept off the books by Congress and presidential administrations for six decades.”

The $6.3 trillion increase in the infinite horizon projection shows that Social Security Administration actuaries are more pessimistic about economic and wage growth, Kotlikoff said.

Of course one of the big problems here is that the politicians will never cut Social Security – it’s too important a tool for manipulating voters – but they think they can increasingly tax it. And that is the soft case the attached article makes.

The proper solution actually is to wind down Social Security. Payroll taxes are impacting young people and particularly young people trying to start businesses as they must pay the entire payroll contribution. This is a real drag on economic growth. But old people on Social Security are way more important to politicians than young people trying to get a foothold. (Not that many young people understand how payroll taxes impact them anyway.)

Click here for the article.