If the surplus was left alone on social security would IT be OK?

Answer 1

It would be OK until 2042 or maybe 2052 or maybe much longer -without any changes to the system. Nobody knows for sure which date is right because it depends upon how the economy does and whether we are all living a lot longer 35 years from now. (If by 2042, we have cured cancer and heart disease - and if everybody is living to be 90, obviously some changes will have to be made.) Even when the surplus is finally used up, Social Security wouldn't be broke - It would just have to go back to the pay as you go system where younger workers paid for the retirement of the previous generation. This should be easier if most of the baby boom generation is dead. (In 2042, the oldest boomers will be 96 if they are still alive.)

The real problem is that in order to leave the surplus alone - the government would have to balance the non social security part of the budget - Then the surplus (which was about 168 billion dollars last year) - could be used to buy up government bonds from investors - The bonds could then be sold back to investors when money is needed to pay benefits. In order for the non- social security budget to become balanced, we would have to roll back a lot of the tax cuts that have been enacted in recent years.

Answer 2

I don't know if it would be OK, but it would be better. Whenever something needs funding, the money is often taken from Social Security. It's never paid back, though.

Answer 3

Yes, but don't get your hopes up, it's on the rights hit list.