The U.S. Treasury released a report yesterday called Social Security Reform: The Nature of the Problem. Here is the summary:
Social Security faces a shortfall over the indefinite future of $13.6 trillion in present value terms, an amount equal to 3.5 percent of future taxable payrolls. Looking at the gap over a shorter horizon provides only limited information on the financial status of the program.
Social Security can be made permanently solvent only by reducing the present value of scheduled benefits and/or increasing the present value of scheduled tax revenues. Other changes to the program might be desirable, but only these changes can restore solvency permanently.
Delaying changes to Social Security reduces the number of cohorts over which the burden of reform can be spread. Not taking action is thus unfair to future generations. This is a significant cost of delay.
By itself, faster economic growth will not solve Social Security’s financial imbalance—realistically, there is no way to “grow out of the problem.”
So my question is "What would you do?"
16 comments:
We should try to obtain economic growth as much as possible, and increase the tax revenues. But we whatever we do we should try to fix the problem as fast as possible inorder to maintain fairness in the future.
Kaley Moore (5)
Spoken like a true politician. You didn't really suggest anything other that "fix it as soon as possible" and by "economic growth".
There is only one way to fix social securities currrent problems. The solution is to raise taxes, and reduce spending.
Petra-5
Nichole C. 1
I believe there is no solution to the social security problem. Ever since the baby boomers have come of age to get their social security, the money supplied into the fund is not withstanding its needs. If we raise taxes in the social security, it still is not benefitting the future generation because they will not get all of their money back. Social Security is going to be a huge problem in the future, but there is nothing to stop it from capsizing.
Jennifer S.-5th
The social security plan is becoming more and more unstable the longer it struggles to make ends meet. Eventually our generation will be screwed because we will end up paying through the nose on social security but when it comes time for us to retire, we will be given hardly anything back. We would be lucky to obtain any of that money back. Social security is declining and nothing really can be done to stop it and eventually there will be no social security benefits for anyone.
Laura B. 5th
I think the social security problem can be solved simply, by honoring those who are currently on it in a limited fashion and finishing the program with that generation. It just seems like no one really likes that answer so it is rarely debated. I think if we were to end social security and start a similar new program the future would not be so grim. What or how that new program would work is another matter though.
To be honest, I don't know how to solve the problem. To me, it seems that either way somebody loses much needed money. It's just a matter of whether we should take it from people now or later, although if we wait until later, the amount of money lost will be much higher.
Lauren R. 5th
We need to cut the fat, the people that are on social security and don't need the money shouldn’t be on it. The politicians who borrowed money from social security need to return it to the American people. The population who are retiring should not have to take money out just because there 65, if they don’t need the money why give it to them?
We all must do this first be for people try to put a bigger present of their income into social security, it is true that if more people spend more money into social security it will help the problem but not many people are going to be happy to see their money go up in flames. They can kiss the money good by. There is no great way to solve the social security problems. I believe it was a bad plan to start with and you would be crazy to expect money from the government.
Chris C
1st
Tiffany G. 1st.
Well like the end of post says "We can't grow out of the problem." It is here to stay. However I would say that maybe we should try to save up more for Social Security so we will have the money to give to the people when they retire.
I think that there is no way to fix social security problems....it sucks....
well i think that, like the end of the post says "we can't grow out of the probem".. true that.
Poe Weaver
uhh. that one two up there is like ahhhhhh so mine dude
Claydin Patterson 2nd
Poe Weafver 6th
agree with lauren...can this be solved? either way, needed money is lost,but even that money is never enough....
brittany hoffman 5th
above comment =]
Get rid of it.
Get off the government teet!
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