Social security debt? How is that possible?

Question

Where did the money go?

Answer 1

Because the money WE put into SS (that little tab on our paychecks) doesn't GO to SS.. The *IDIOTS* in WA put it in a *slush fund* because there was excess... if they just Put the money where they SAID it was going there would be no problem!

Answer 2

That's going to require a long explanation, and here goes.

First, you have to understand what money is. It is just a way of exchanging goods and services. Instead of one person baking bread and exchanging it for a pair of shoes, systems of currency were established long ago, enabling modern economies and modern societies to exist.

In today's world, money takes many forms, including paper money, coins, credit cards, and even bits of information in computers. The money in the social security system has never just existed as paper money sitting in a vault somewhere. It has always been used to pay for government spending. In exchange, the government has always issued pieces of paper saying that the government would stand behind it.

The problem is not with the money. The government can go on creating all the money it wants forever.

The problem is that there soon are not going to be enough native-born Americans working to support the aging US population. It wouldn't matter if there were a billion dollars of money for each social security recipient, if there were no younger workers around to provide the work to sustain the economy.

So, is there a real problem? No, not at all. After all the politicians get through acting stupid and criticizing immigration, they will eventually have to allow millions more younger immigrants into the country to keep the economy going. Thank goodness for the future generations of new Americans from developing countries ... Latin Americans, Africans, Indians, Chinese, Arabs, and more.

The result is going to be a wonderfully vibrant multi-cultural America, with a strong economy, and a strong social security system.

Relax, and learn to appreciate people from other cultures, especially Hispanics.

Comprende?

Answer 3

Social Security was not enacted to replace our incomes in retirement, and there were not 20 workers for every one retiree when it started, and money paid to SS has NEVER gone into a "lock box."
Simple demographics: SS is pay-as-you-go system, ie, workers today are paying for retirees today, just as these current retirees paid for the retirees 30 years ago. The Baby Boomer generation is the largest generation living, and we do not have as many babies as we used to. However, since SS was not created to be our only source of retirement income, the government has continually modified it and created other programs (IRC 401k, 403b, 457, etc...)
In all liklihood, SS will remain because it is heavily ingrained in our population, but the benefits will decrease. Why, with tax deferred options from employers, this causes concern from people vexes me.

Answer 4

Many of the posters made good valid points for contributing factors, but MotherBear1975 hit the nail smack on the head with the number one reason why social security is in trouble.

Answer 5

When it was implemented, there were 20 workers for 1 retiree. Thanks to longer life expectancy, there are now 3 workers per retiree, and it gets worse all the time.
I BETTER get some SS money--I've been working 28 of the last 31 years, and never got anything. STOP letting them give it to junkies and alcoholics who "can't" work, and we would be ok!!!