logo
  Join        Login             Stock Quote

I.O.U.? More Like "You Owe You" By Way Of Social Security

 March 15, 2010 08:36 AM


The slow-motion decline of the United States continues and no one among the masses appears to be the wiser.  Social Security is about to provoke a funding crisis for the federal government:

For more than two decades, Social Security collected more money in payroll taxes than it paid out in benefits — billions more each year.

Not anymore. This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes — nearly $29 billion more.
(snip)

Now the government will have to borrow even more money, much of it abroad, to start paying back the IOUs, and the timing couldn't be worse. The government is projected to post a record $1.5 trillion budget deficit this year, followed by trillion dollar deficits for years to come.

There is no way to close the gap between what is owed to Social Security recipients and what Uncle Sam is able to pay without some combination of the following:  curtailing benefits, raising taxes, or decoupling annual increases from the Consumer Price Index.  All of these actions will directly impact the Baby Boomer generation, which happens to be the least-prepared generation in American history to face retirement. 

The street protests we've seen in Greece for the past few weeks will soon explode here.  The difference will be the ages of the protestors.  Our Baby Boomers, coddled and indulged since birth, are completely unable to contemplate austerity.  They took to the streets in the 1960s because they were unwilling to make a civic sacrifice for the Vietnam War.  They will take to the streets in their golden years, in walkers and wheelchairs.  This will have a very ugly effect on American culture and politics in 2012 and beyond.

Perhaps that's why the Mayan calendar doesn't run past 2012.  It must have been designed by a Mayan Baby Boomer who didn't want to face retirement. 

Nota bene:  Anthony J. Alfidi is not a Baby Boomer but is preparing for retirement without relying upon Social Security. 
iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageChart Says This Retailer's Comeback Isn't Finished

One of the surprises, at least on the surface, of the market's recent swoon was the outperformance of read on...

article imageETF Performance Review: Major Asset Classes | 19 Dec 2014

It’s all about real estate investment trusts (REITs) these days when it comes to bullish performance among read on...

article imageOil and Global Stock Markets Rebounding Sharply

So far so good on our expectation of a 4 to 5% pullback and then a resumption of the bull read on...

article imageGrading the FOMC

Love its members or loathe them, you have to admire the gradual impact the policy-making committee has had read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center

Related Articles:

Oil and Global Stock Markets Rebounding Sharply
More Articles on: Finance



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.