Big government gone wild: Social Security on the verge of insolvency
by: J. D. Heyes
Tuesday, August 23, 2011
Do you remember the recent debate in Congress and the White House to raise the government’s ability to borrow even more money? The “debate” that was long on raising the debt ceilingbut short on actually cutting government spending?
It wasn’t enough that our leaders failure to effect long term, meaningful budget reformresulted in a leading credit rating agency downgrading U.S. creditfor the first time in our history, but now the budgetary chickens are really coming home to roost.
High unemployment, combined with the rapid growth in baby boomer retirements has strapped Social Security for cash and it is now being pushed to brink of insolvency. The longer the economy remains in the tank, the more strain it will put on this massively expensive entitlement program.
We have known for more than a decade that Social Security was going broke. As far back as 1997, the Brookings Institute, among many other think tanks, predicted that an enormous amount of seniors born in the years following World War II were about to retire, and that doing so would put an equally enormous fiscal strain on Social Security.