Social Security is still failing – with no end in sight

By Michael Master

Social Security is close to broke. CBS reported: “Social Security is on track to cut benefits to retirees in 2033, when its trust fund reserves are forecast to be depleted. The reduction could be substantial, according to a news analysis.

How did this happen? Social Security was supposed to be an annuity for those who pay into it, with forced employer participation. Contributions into Social Security by a worker and that worker’s employer were supposed to be placed into a trust fund for disbursement to that employee at retirement. The fund would produce compounded returns on the contributions. A worker gets nothing from Social Security until that worker pays into it for at least 40 quarters (10 years). And that worker receives income at retirement based on how much he or she paid into it. Nothing in, then nothing out. That is an annuity.

As an annuity, Social Security should never run out of money for those who contribute to it. Instead, the program became a Ponzi scheme where the current workers pay for the current retirees. No compounded returns.

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Why did that happen? Because politicians since LBJ and the Democratic Congress borrowed from the Social Security trust fund for other programs like Vietnam, Affirmative Action, and The Great Society without repaying those loans to the Social Security trust fund. They legislated that the contributions to Social Security would be treated as part of the general budget for use by the federal government to fund programs they wanted, and that bonds (IOUs) would be placed into the fund to cover the loss of those funds.

Now, as the number of retirees increases versus the number of people working, the Ponzi scheme is falling apart.

So why are the number of retirees increasing as a percentage of total workers? Because the U.S. birth rate has been so low for the last 35 years that more people are retiring than entering the workforce.

The liberal solution, the government deep state solution, is to allow more immigrants to work in the U.S. instead of doing what is necessary to cut government spending to replace the money that was taken from Social Security and instead of doing what is necessary to increase the citizen birth rate.

So how is that increase in the number of immigrants working out? Not good for Americans. How did Affirmative Action for the last 55 years work out? SCOTUS just ruled that programs that are based on race are racist, unconstitutional. After $50 trillion in net present dollars spent on race-based programs for the last two generations, blacks still have the highest crime rates, the lowest scholastic achievements on IQ and SAT tests, and the highest percentage of children raised without fathers. Race-based government programs have failed black Americans.

So why are the media spending so much time on the Trump indictments instead of these failed liberal programs, the harms of using immigration to offset the low birth rate and what is happening to Social Security? Why? Because their woke, LBGTQ, race-based agenda is more important to the media cartel than what is actually important to Americans. Because getting Trump is more important to the liberal media cartel than exposing these real harms to Americans. And because liberals do not have any real solutions to the real problems facing average working American citizens.

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