Saturday, July 08, 2006
Why should Social Security be taken out of our check?
If you have yet to hear social security benefits could be bankrupt by the time our generation is due to collect. Even after we have paid our dues we may not recieve any!! Well, in my opinion this should be illegal! I could use my money now! As a broke college student God knows I sure need it! What do you all think? (Rain Hardy)
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2 comments:
Almost, Josh. There is currently a social security trust fund that has a certain amount of money in it. When people talk about social security going bankrupt (which is projected to be around 2040), what they mean is that the trust fund will no longer have any money in it. At that point, it is not true that people won't get paid their social security money. The money that is still taken out of paychecks will still cover 70% of the payouts from that point on -- if nothing else changes. We have had similar shortages before and Congress has always met them in the past.
Besides, social security is often referred to as the "third rail of politics," meaning that ny politician that doesn't make sure that social security payouts are made is likelty to get voted out of office quickly. The chances that anyone will not get paid their social security are almost non-existent. The real question is how will we pay for those payments? The only options are 1) to raise taxes or 2) to cut all services currently being offered, including national security.
And, Alex, you feel that way now, but I guarantee you that you will fell otherwise when you are retired.
Just to reiterate, there is no chance that anyone will not get their social security. Any politician who allowed that to happen would be killing his or her own career. You'll get it, the only question is, if things stay exactly like they are now (which never happens in politics), where will the balance of the funding come from? The amount that workers who will be working when we are all retired will be paying into social security will cover at least 70% of benefits as projected right now. In all likelihood that shortage will be fixed long before 2040, when it is projected to start.
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