Parking at the gym a couple days ago I noticed that the car
in the next parking spot had a bumper sticker that stated “If You Receive
Social Security, Thank Democrats”. After I rolled my eyes I thought about it
and was less annoyed because after reflection realized that it was at least honest.
Honest in making explicit the notion that a monthly social security check
should be considered payment in return for a vote. Certainly no politician or
the democrat party will ever actually say this (I failed to record the bumper
sticker’s origin) but that doesn’t mean that no one thinks it.
Trouble thy name is Social Security. Ostensively social security
is funded by the so-called “payroll” tax of which the employer (in a
nonsensical world where any employer just has money around to pay for things
like this instead of just paying employees less to cover it) and the employee
both pay half. For many years social security took in more than it paid out and
used the surplus to purchase bonds. The administration has maintained a cut in
the payroll tax since the 2009 stimulus creating a deficit in anticipated
social security funding. This deficit, along with an increase in beneficiaries
per payee, has resulted in social security paying more than it takes in forcing
the program to tap into its bonds. That’s what they’re for though, right? That’s
right but, the demographic trends alone are not promising requiring even higher
taxation rates and/or decreases in benefits for social security to continue.
The bond surplus was expected to last until the year 2041 in
2007. On April 23, that number was revised down to 2033. That’s right, over
five years the condition of the social security trust fund has moved eight
years closer to bankruptcy. The bonds will be exhausted and there won’t be
enough taken in to pay promised benefits. And there’s no reason to believe that
the bonds will last even that long based on what has occurred over the last
five years. Because of these shortfalls
and a rapidly approaching absolute bankruptcy the program is essentially in
turmoil. The way that it works, paying current beneficiaries from the taxes
collected today from tomorrow’s recipients is nothing more than a pyramid
scheme, problem is that the bottom keeps shrinking and the top has more
longevity than once upon a time. Thank Democrats.