Forums Forums - Off Topic Forum FUN




Go Back   Forums Forums - Off Topic Forum FUN > Off Topic Forums > Business 101 Forum

Business 101 Forum Small Business, Big Business, ...any business talk here.

Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 06-12-2019, 07:39 PM
jim slagle's Avatar
jim slagle jim slagle is offline
Cold Member

 
Join Date: Oct 2005
Posts: 13,690
Thanks: 36,775
Thanked 19,020 Times in 7,973 Posts
jim slagle is on a distinguished road
Default Baby boomers aren't to blame for Social Security troubles, study suggests

Baby boomers aren't to blame for Social Security troubles, study suggests
By Ann SchmidtPublished June 12, 2019Social Security BenefitsFOXBusiness

https://www.foxbusiness.com/personal...urity-troubles

Baby boomers are often blamed for putting a strain on Social Security, but a new study has found that the generation may not actually be responsible.

A new report from the Center for Retirement Research at Boston College has found that the problems facing Social Security today are a result of the way the program was developed in the late 1930s.

Social Security programs have increasingly been facing the threat of long-term insolvency. An official forecast released in late April projects the 84-year-old Social Security program will only be able to pay about 80 percent of the benefits promised in 2035.

“At or around 2034, you're either going to have to cut Social Security benefits very sharply or you're going to have raised taxes to basically keep benefits as they were," MarketWatch columnist Brett Arends told FOX Business’ Neil Cavuto at the time.

Social Security and Medicare currently account for 45 percent of federal spending in the U.S. Economists have also projected that the cost of the entitlement programs is estimated to be nearly 8.7 percent of GDP in 2019.

According to the study, the troubles with Social Security began in its earliest year. Originally, Social Security was more similar to a private insurance plan, where a trust fund would have been accumulated. However, an amendment in 1939 added spouses and survivor benefits, which had been previously unfunded.

In those early years after the amendment was passed, retirees received more than they had contributed, according to the study.

“The decision essentially gave away the trust fund that would have accumulated and, importantly, gave away the interest on those contributions,” the report said.

The study referred to this as the “Missing Trust Fund.” That missing fund, along with the fact that Social Security is a “pay-as-you-go” system, makes it more expensive to maintain today.

Being a “pay-as-you-go” system means that "today's workers pay Social Security taxes into the program and money flows back out as monthly income to beneficiaries," the National Academy of Social Insurance explains online.

Though there was a buildup of reserves after a 1983 amendment to prepare for baby boomers, there wasn’t enough to fully fund the program. Workers would still have to contribute 14.3 percent in order to maintain a 36 percent replacement rate, according to the study. That is 3.7 percent more than if Social Security had already been fully funded over time.

“Essentially, the full amount of the shortfall can be attributed to the fact the program does not have a trust fund producing interest,” the report said.

The report also found that instead of causing problems for Social Security, baby boomers — people born between 1946 and 1964 — will actually have paid more into Social Security than they are set to receive because of the 1983 buildup.

The report suggested two solutions to the problems with Social Security, either to raise taxes permanently to replace the missing interest from the “Missing Trust Fund” or to increase taxes by a higher amount temporarily “until a trust fund consistent with a fully funded program is built up.”

Fox Business’ Jennifer Earl and Elise Oggioni contributed to this report.
__________________
.

The United States Constitution ©1787. All Rights Reserved

Sometimes I'm fast. Most of the time I'm half fast!

Never put off till tomorrow what you can avoid all together!

Friends come and go, but enemies accumulate

FF REQUIRES NO PHYSICAL FITNESS PROGRAM.
EVERYONE GETS ENOUGH EXERCISE JUMPING TO CONCLUSIONS, FLYING
OFF THE HANDLE, RUNNING DOWN THE MODERATORS, KNIFING FRIENDS IN THE
BACK, DODGING RESPONSIBILITY AND PUSHING THEIR LUCK.
Reply With Quote
The Following 3 Users Say Thank You to jim slagle For This Useful Post:
Danang Sailor (06-13-2019), Doc  (06-12-2019), mla2ofus (06-12-2019)
  #2  
Old 06-12-2019, 09:19 PM
Doc's Avatar
Doc Doc is offline
Forum Admin

 
Join Date: Sep 2005
Location: Ohio, USA
Posts: 35,243
Thanks: 26,667
Thanked 21,126 Times in 7,607 Posts
Doc will become famous soon enoughDoc will become famous soon enough
Default Re: Baby boomers aren't to blame for Social Security troubles, study suggests

I can't help but wonder how long it would have lasted had congress not used the fund to bail them out in the 80's?
__________________
Scott me up Beamy.

Other Fun Forums:

Net Tractor and RTV Talk + Net Cooking Talk
Reply With Quote
The Following 5 Users Say Thank You to Doc For This Useful Post:
300 H and H (06-13-2019), Danang Sailor (06-13-2019), FrancSevin (06-13-2019), jim slagle  (06-12-2019), mla2ofus (06-12-2019)
  #3  
Old 06-13-2019, 09:48 AM
FrancSevin's Avatar
FrancSevin FrancSevin is offline
Silver Member
 
Join Date: Oct 2011
Posts: 11,034
Thanks: 6,191
Thanked 9,025 Times in 2,935 Posts
FrancSevin has a spectacular aura aboutFrancSevin has a spectacular aura about
Default Re: Baby boomers aren't to blame for Social Security troubles, study suggests

Quote:
Originally Posted by Doc View Post
I can't help but wonder how long it would have lasted had congress not used the fund to bail them out in the 80's?
BINGO!

The mistake was made, not in 1933, but in 1980's when SS changed from being a mandatory insurance to a Congressional slush fund.

It is now a 15% income tax on every dollar a working person earns. That is the base tax no one remembers when politicians talk about changing our tax rates so the rich pay more. We are told the employer pays half of that. A big LIE!
In truth, your employer pays all your taxes when he hands you a pay check. Some they pay directly and some you pay later. But, unless you won the lottery, all of it comes from the employer. And it averages in total, about half of what you earned.


I consider it theft by deceit
__________________
Proudly Deplorable
When criminal justice is supplanted by social justice there is no justice.
__________________
Reply With Quote
The Following 3 Users Say Thank You to FrancSevin For This Useful Post:
300 H and H (06-13-2019), Doc  (06-13-2019), jim slagle  (06-13-2019)
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
U.S. Study: Terrorists Aren’t “Aggressive Offensive Foe Seeking Domination” Cowboy Religious Debate Forum 6 07-11-2012 12:40 PM
Baby Boomers Could Force Economic Catastrophe PBinWA Political Debate Forum 15 01-13-2011 11:56 AM
Bad habits can age you by 12 years, study suggests CityGirl Health and Fitness Forum 3 05-03-2010 06:32 AM
Battle Hymn Of The Baby Boomers pirate_girl Junkman's Corner 1 06-17-2009 08:31 PM
Baby Boomers Rejoice! rback33 Photos, Cartoons & Videos Forum 3 08-07-2008 01:20 AM





All times are GMT -4. The time now is 09:52 AM.


Powered by vBulletin® Version 3.8.9
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
Copyright © 2002 - 2018 www.ForumsForums.com