What will happen to Social Security? Jack Cafferty, the most lovable curmudgeon I follow, got it going on this topic the other day at CNN.com. Here’s a bit and I wonder what you think:
First it was the banks and car companies… and now it looks like Social Security is the next in line for a taxpayer bailout.
Fortune Magazine’s Allan Sloan writes that for the first time in 25 years – Social Security is taking in less than it’s spending on benefits.
That’s because For decades – the government has been using the surpluses from the nation’s largest social program to pay for other things; and now Social Security is running out of money and pretty much consists of IOUs……..
Things haven’t been so bleak for the government trust fund since the early 80s – when it came very close to running out of money. Back then, the government wound up trimming benefits and raising taxes – which led to the significant cash surpluses.
Meanwhile Social Security already provides more than half the income for most retirees; and with millions of people seeing their home values and stock portfolios slashed, this probably means they’ll become even more dependent on social security in the future.