The Social Security Safety Net Has Big Holes

The Trustees for Social Security and Medicare issued their annual report today and it does not make for nice reading.

Social Security is now forecast to begin paying out more than it receives in 2016 and be insolvent in 2037. Previously it was expected to be revenue negative in 2017 and insolvent in 2041. Medicare is worse. It will be revenue negative this year and insolvent in 2017.

I don’t know what assumptions underlie the forecasts but I rather suspect that they are rosy. If anything, we can probably expect these dates to continue to move in, perhaps drastically if the economy remains in bad shape.

Do you think the politicians have the nerve to deal with this yet or is it going to take a crisis to make them deal with the issues?

more: here

About Tom Lindmark 401 Articles

I’m not sure that credentials mean much when it comes to writing about things but people seem to want to see them, so briefly here are mine. I have an undergraduate degree in economics from an undistinguished Midwestern university and masters in international business from an equally undistinguished Southwestern University. I spent a number of years working for large banks lending to lots of different industries. For the past few years, I’ve been engaged in real estate finance – primarily for commercial projects. Like a lot of other finance guys, I’m looking for a job at this point in time.

Given all of that, I suggest that you take what I write with the appropriate grain of salt. I try and figure out what’s behind the news but suspect that I’m often delusional. Nevertheless, I keep throwing things out there and occasionally it sticks. I do read the comments that readers leave and to the extent I can reply to them. I also reply to all emails so feel free to contact me if you want to discuss something at more length. Oh, I also have a very thick skin, so if you disagree feel free to say so.

Enjoy what I write and let me know when I’m off base – I probably won’t agree with you but don’t be shy.

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