Excerpt
RAY SUAREZ (Newshour): Next, the long-term health of Social Security worsens.
That's according to the latest projections today from its trustees. The program's trust fund will become insolvent in 2033, three years earlier than previously estimated. The Social Security fund for disability is in even tougher shape. It's expected to move into the red in 2016, but trustees favor transferring money to shore it up.
Treasury Secretary Tim Geithner spoke of the impact to come at a briefing today.
SECRETARY OF TREASURY TIMOTHY GEITHNER: The reports project that when considered on a combined basis, Social Security's retirement and disability programs have dedicated funds sufficient to cover benefits for the next 20 years.
But, in 2033, incoming revenues and trust fund resources will be insufficient to maintain the payment of full benefits. After that time, dedicated funds will be sufficient to cover about three-quarters of full benefits.
RAY SUAREZ: Currently, the average Social Security benefit for a retiree is $1,232 a month. Medicare's finances are no worse than they were a year ago, but it faces a bleaker situation overall. Its hospital insurance fund will become insolvent in 2024, and that's assuming Congress and the president allow scheduled cuts in payments to take place in future years, something that has not been the case historically.
Tonight, we focus on the state of Social Security.
Nancy Altman is the co-director of the group Social Security Works. She's also the author of the book "The Battle for Social Security." And David John is a research fellow specializing in retirement security with the Heritage Foundation. He worked previously on Capitol Hill on proposals to change the program.
COMMENT: Quite awhile back I posted an article about the Social Security fund being a stack of IOUs. That's because congress raides the Social Security fund as a means to fund government.
So, beware of what ANYONE says about the fund. Paying back all those IOUs will raise the deficit. How do you think that will go over in today's political climate?
HISTORICAL REMINDER: When Social Security was implemented the demographics (more workers that retirees) supported the design of today's workers paying for the people drawing Social Security.
As one of the interviewees in the video commented, today's demographics are changing; more retirees will be drawing from Social Security than workers paying into Social Security, in the future.
I basic fault of Social Security is its design (workers paying current retirees). BUT the historical fact that at the time when American distrusted banks (Crash of '29 and Great Depression) the government WAS the acceptable option.
As for today? Would you trust the Social Security safety-net if it was based on the greatest gambling casino called Wall Street?
To put it another way, could you afford the risk of loosing everything if your bet is wrong?
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