As a follow up to last week’s article, a different perspective has been located. Although the common belief is for Social Security assets to last into the early 2030’s, one writer presents arguments that the time horizon is much less, closer to 10 years (see here). The author, David Stockman, reinforces our article with the statement that the Social Security is managed by “redeeming phony assets, booking phony interest income on those non-existent assets: and projecting implausible GDP growth and phantom payroll tax revenues.” He then continues in the article to support this argument.
Anyone that spends even a limited amount of time researching this topic will quickly come to a similar conclusion. Once the conclusion is reached, a sane and logical person would then inquire about possible solutions. In fact, there are several solutions that have been proposed that would alleviate this developing crisis (see here). Also, see the following for an interesting site to interactively solve this problem on your own (see here). As a suggestion, try slowing benefit growth, modifying COLAs, reducing fraud, tighten DI eligibility, and subjecting all wages to payroll taxes. This seems to solve the problem.
The problem and solutions have been identified, but unfortunately delay adds to the difficulty. Very little gets done in an election year. Hopefully, our government leaders will pay attention next year and address this important issue. Many are doubtful of a resolution until it is a full blown crisis. Count this writer as one member of that group.
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