Social Security to run deficit next two years

[I AM NOT THAT GUY 5,715]

Social Security strained by early retirements

WASHINGTON (AP) - Big job losses and a spike in early retirement claims from laid-off seniors will force Social Security to pay out more in benefits than it collects in taxes the next two years, the first time that's happened since the 1980s.

The deficits - $10 billion in 2010 and $9 billion in 2011 - won't affect payments to retirees because Social Security has accumulated surpluses from previous years totaling $2.5 trillion. But they will add to the overall federal deficit.

Applications for retirement benefits are 23 percent higher than last year, while disability claims have risen by about 20 percent. Social Security officials had expected applications to increase from the growing number of baby boomers reaching retirement, but they didn't expect the increase to be so large.

What happened? The recession hit and many older workers suddenly found themselves laid off with no place to turn but Social Security.

"A lot of people who in better times would have continued working are opting to retire," said Alan J. Auerbach, an economics and law professor at the University of California, Berkeley. "If they were younger, we would call them unemployed."

Job losses are forcing more retirements even though an increasing number of older people want to keep working. Many can't afford to retire, especially after the financial collapse demolished their nest eggs.

Nearly 2.2 million people applied for Social Security retirement benefits from start of the budget year in October through July, compared with just under 1.8 million in the same period last year.

The increase in early retirements is hurting Social Security's short-term finances, already strained from the loss of 6.9 million U.S. jobs. Social Security is funded through payroll taxes, which are down because of so many lost jobs.

The Congressional Budget Office is projecting that Social Security will pay out more in benefits than it collects in taxes next year and in 2011, a first since the early 1980s, when Congress last overhauled Social Security.

Social Security is projected to start generating surpluses again in 2012 before permanently returning to deficits in 2016 unless Congress acts again to shore up the program. Without a new fix, the $2.5 trillion in Social Security's trust funds will be exhausted in 2037. Those funds have actually been spent over the years on other government programs. They are now represented by government bonds, or IOUs, that will have to be repaid as Social Security draws down its trust fund.

President Barack Obama has said he would like to tackle Social Security next year.

"The thing to keep in mind is that it's unlikely we are going to pull out (of the recession) with a strong recovery," said Kent Smetters, an associate professor at the University of Pennsylvania's Wharton School. "These deficits may last longer than a year or two."

About 43 million retirees and their dependents receive Social Security benefits. An additional 9.5 million receive disability benefits. The average monthly benefit for retirees is $1,100 while the average disability benefit is about $920.

The recession is also fueling applications for disability benefits, said Stephen C. Goss, the Social Security Administration's chief actuary. In a typical year, about 2.5 million people apply for disability benefits, including Supplemental Security Income. Applications are on pace to reach 3 million in the budget year that ends this month and even more are expected next year, Goss said.

A lot of people who had been working despite their disabilities are applying for benefits after losing their jobs. "When there's a bad recession and we lose 6 million jobs, people of all types are going to be part of that," Goss said.

http://apnews.myway.com/article/20090927/D9AVHRDG0.html

[_Simpson_ 250]

but wait I thought it was a well oiled machine

[mawilson 2,133]

but wait I thought it was a well oiled machine

It is. For decades, the government has borrowed money from the Social Security

trust fund to finance their pork barrel spending operations.

They were able to do so because the Social Security trust fund always ran a surplus.

The Republicans and Democrats never talk about repaying the trillions of dollars

they have borrowed from the trust fund over the past 25 years.

Now that the fund has reached its break-even point and they can't steal/borrow any

more money from it, you will hear talk of "fixing Social Security".

There's nothing to fix. The Social Security trust fund is in balance. The Republican-

Democrat Corporate-Fascist Regime has stolen (aka "borrowed") trillions of dollars

from it over the past 25 years, but instead of repaying the money they borrowed,

they want to "reform the system" and pretend it never happened.

Edited September 28, 2009 by mawilson

[_Simpson_ 250]

but wait I thought it was a well oiled machine

It is. For decades, the government has borrowed money from the Social Security

trust fund to finance their pork barrel spending operations.

They were able to do so because the Social Security trust fund always ran a surplus.

The Republicans and Democrats never talk about repaying the trillions of dollars

they have borrowed from the trust fund over the past 25 years.

Now that the fund has reached its break-even point and they can't steal/borrow any

more money from it, you will hear talk of "fixing Social Security".

There's nothing to fix. The Social Security trust fund is in balance. The Republican-

Democrat Corporate-Fascist Regime has stolen (aka "borrowed") trillions of dollars

from it over the past 25 years, but instead of repaying the money they borrowed,

they want to "reform the system" and pretend it never happened.

Its not and thats why it was able to be taken advantage of, this is one of the many reasons people dont want health care to go through, were not stupid we know this kind of nonsense will happen.

[one...two...tree 2,762]

but wait I thought it was a well oiled machine

It is. For decades, the government has borrowed money from the Social Security

trust fund to finance their pork barrel spending operations.

They were able to do so because the Social Security trust fund always ran a surplus.

The Republicans and Democrats never talk about repaying the trillions of dollars

they have borrowed from the trust fund over the past 25 years.

Now that the fund has reached its break-even point and they can't steal/borrow any

more money from it, you will hear talk of "fixing Social Security".

There's nothing to fix. The Social Security trust fund is in balance. The Republican-

Democrat Corporate-Fascist Regime has stolen (aka "borrowed") trillions of dollars

from it over the past 25 years, but instead of repaying the money they borrowed,

they want to "reform the system" and pretend it never happened.

Exactly.

[_Simpson_ 250]

I mostly made that comment because now that the left wants health care to go through there acting like every other part of the gov. is a well oiled machine when we all know it isnt.

[one...two...tree 2,762]

I mostly made that comment because now that the left wants health care to go through there acting like every other part of the gov. is a well oiled machine when we all know it isnt.

mawilson explained pretty well why Social Security is and has been stable. So trying to argue that it is an example of a failed government program is laughable.

[_Simpson_ 250]

but wait I thought it was a well oiled machine

It is. For decades, the government has borrowed money from the Social Security

trust fund to finance their pork barrel spending operations.

They were able to do so because the Social Security trust fund always ran a surplus.

The Republicans and Democrats never talk about repaying the trillions of dollars

they have borrowed from the trust fund over the past 25 years.

Now that the fund has reached its break-even point and they can't steal/borrow any

more money from it, you will hear talk of "fixing Social Security".

There's nothing to fix. The Social Security trust fund is in balance. The Republican-

Democrat Corporate-Fascist Regime has stolen (aka "borrowed") trillions of dollars

from it over the past 25 years, but instead of repaying the money they borrowed,

they want to "reform the system" and pretend it never happened.

Exactly.

Why exactly, is not Democrats and Republicans part of the gov. isnt them being able to access those funds prove that it wasnt a well oiled machine and does it not point out why its not good to have programs as such ran by the US gov.?

[mawilson 2,133]

Its not and thats why it was able to be taken advantage of, this is one of the many reasons people dont want health care to go through, were not stupid we know this kind of nonsense will happen.

This kind of nonsense should be illegal. The Social Security trust fund is for Social Security.

Need money to finance military operations? No problem - borrow it from China.

Politicians can't sleep at night if they know some program has a lot of money. They just

HAVE to spend it. The crooks can't leave it alone.

[_Simpson_ 250]

I mostly made that comment because now that the left wants health care to go through there acting like every other part of the gov. is a well oiled machine when we all know it isnt.

mawilson explained pretty well why Social Security is and has been stable. So trying to argue that it is an example of a failed government program is laughable.

So explain to me why Dems and Rebs are not part of the gov and how them being able to access the funds is not a failure? It is a failed program but you want to pretend its not so that you can have your health care.

[_Simpson_ 250]

Its not and thats why it was able to be taken advantage of, this is one of the many reasons people dont want health care to go through, were not stupid we know this kind of nonsense will happen.

This kind of nonsense should be illegal. The Social Security trust fund is for Social Security.

Need money to finance military operations? No problem - borrow it from China.

Politicians can't sleep at night if they know some program has a lot of money. They just

HAVE to spend it. The crooks can't leave it alone.

Well of course it should be illegal, but hey thats what happens will you put a bunch politicians in control. In a perfect world we could put a bow tie on the Obama Care and call it good but we dont live in a perfect world and I do not want to go down the Obama Care road.

Edited September 28, 2009 by _Simpson_

[one...two...tree 2,762]

Its not and thats why it was able to be taken advantage of, this is one of the many reasons people dont want health care to go through, were not stupid we know this kind of nonsense will happen.

This kind of nonsense should be illegal. The Social Security trust fund is for Social Security.

Need money to finance military operations? No problem - borrow it from China.

Politicians can't sleep at night if they know some program has a lot of money. They just

HAVE to spend it. The crooks can't leave it alone.

Well said.

[one...two...tree 2,762]

Its not and thats why it was able to be taken advantage of, this is one of the many reasons people dont want health care to go through, were not stupid we know this kind of nonsense will happen.

This kind of nonsense should be illegal. The Social Security trust fund is for Social Security.

Need money to finance military operations? No problem - borrow it from China.

Politicians can't sleep at night if they know some program has a lot of money. They just

HAVE to spend it. The crooks can't leave it alone.

Well of course it should be illegal, but hey thats what happens will you put a bunch politicians in control. In a perfect world we could put a bow tie on the Obama Care and call it good but we dont live in a perfect world and I do not want to go down the Obama Care road.

We have a representational democracy. You get what you vote for.

[Heracles 417]

Its not and thats why it was able to be taken advantage of, this is one of the many reasons people dont want health care to go through, were not stupid we know this kind of nonsense will happen.

This kind of nonsense should be illegal. The Social Security trust fund is for Social Security.

Need money to finance military operations? No problem - borrow it from China.

Politicians can't sleep at night if they know some program has a lot of money. They just

HAVE to spend it. The crooks can't leave it alone.

Bingo! The money was there but they borrowed from it to pay for things like wars.

No sh-t it's running out of money dickwads.

Edited September 28, 2009 by Booyah!

[_Simpson_ 250]

Its not and thats why it was able to be taken advantage of, this is one of the many reasons people dont want health care to go through, were not stupid we know this kind of nonsense will happen.

This kind of nonsense should be illegal. The Social Security trust fund is for Social Security.

Need money to finance military operations? No problem - borrow it from China.

Politicians can't sleep at night if they know some program has a lot of money. They just

HAVE to spend it. The crooks can't leave it alone.

Well of course it should be illegal, but hey thats what happens will you put a bunch politicians in control. In a perfect world we could put a bow tie on the Obama Care and call it good but we dont live in a perfect world and I do not want to go down the Obama Care road.

We have a representational democracy. You get what you vote for.

Thats why we on right vote for people who are supposed to uphold conservative values which are small government. We want to keep as much money out of politicians hands as possible because we know the corruption that will follow. That said you never answered the question, why do you not want to focus on the big picture here? You want to act like its not a failed program because Reps and Dems screwed it over when in fact they are part of the gov. and the fact that they could access this money made the program a failure.