Social Security Insanity

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The Congressional Budget Office now predicts the Social Security fund will pay out more than it earns starting this year – as in it’s happening right now.

That’s just a shade off of last year’s forecast, which expected the fund to run a deficit starting in late 2016. And a far cry from the CBO data we used while making I.O.U.S.A. in 2007 and 2008.

And as you can see, the fund is not just dipping its toes in deficit waters. The current forecast reveals a torrential drop from $20 billion surplus to $29 billion shortfall since we premiered the film on Aug., 22, 2008 – before we knew who the current president would be… and, more importantly, before Lehman Bros. crumbled.

Surely, some sort of unpredictable catastrophe precedes such a revision… something that wasn’t even on the national radar in 2009:

“The problem,” The New York Times helpfully suggests, “is that payments have risen more than expected during the downturn, because jobs disappeared and people applied for benefits sooner than they had planned. At the same time, the program’s revenue has fallen sharply, because there are fewer paychecks to tax.”

Really. Who could have seen that coming?

About Addison Wiggin 88 Articles

Affiliation: Agora Financial

Addison Wiggin is the editorial director of The Daily Reckoning, and executive publisher of Agora Financial, a multi-million dollar financial research firm and publishing group based in Baltimore, Maryland. His second edition of The Demise of the Dollar… and Why it’s Even Better for Your Investments was just fully revised and updated.

He is also the executive producer of and a writer of I.O.U.S.A. a feature length documentary film nominated for the Grand Jury prize at the 2008 Sundance Film Festival. The film is inspired by the international bestsellers Financial Reckoning Day and Empire of Debt, which he coauthored with Bill Bonner.

Visit: The Daily Reckoning

1 Comment on Social Security Insanity

  1. The financial mess we have incountered certainly did not occur over night, but was a well planned sceme slowly done over the years right after Bush became president.- So a few would walk off with the wealth, as was done in 1929. The middle class was getting too close to the rich, and the poor to the middle. The wealthy have always dominated, and intends to continue.

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