With such high unemployment, payroll tax receipts will not cover SS expenditures this year. The interest we "pay" on the debt we owe SS is just a bookkeeping entry so no help there. Talk about the chickens coming home to roost...
When SS started under FDR, nobody could foresee the post war baby boom. At that time, they smugly believed it would produce current year revenue for the government in perpetuity. They even said so on the front page of the bill!
Once the baby boom hit (and our boom lasted 2x longer than in any other country that fought WWII) SS was mathematically doomed. Any junior actuary - basically just a math major with a bachelor's - could have told you as much since 1970 if not sooner.
Our baby boom demographics also guarantee that socialized medicine will be an expensive failure. US demographics already guarantee significant rationing of health care in the very near future. The only question is: should we involve government bureaucrats in this or are such difficult decisions best left to doctors and patients?
The downhill slide of America will be hard enough on all of us anyway - who needs more unaccountable government drones mixed into the health care equation???
Mises U: "A Week Unlike Any Other"
3 days ago