Ever since Social Security was adopted in 1935, many Americans have looked forward to receiving retirement checks from the federal government to provide for their “old age.”
Now, more than 52 million Americans receive Social Security checks each month.
The problem, however, is that the Social Security pay-out promises have exceeded the eventual prospects of sufficient tax money to pay for them.
Fortunately, no one now receiving Social Security needs to worry that his or her checks will stop. But there will be huge problems in future years.
Social Security began with the promise of checks at age 65. But as payments have been increased, the retirement age has been increased two months for each birth year, so retirement on full Social Security benefits for those born in 1960 or later has advanced to age 67.
Social Security is so important to so many people that any suggestion of any changes involving higher taxes, reduced benefits or later eligibility invites a “lightning strike” reaction.
Most people want full Social Security benefits, even increased ones, without raising taxes to pay increasing costs.
Many people think their payroll tax deductions for their later Social Security benefits have been, and still are, put in a “set-aside fund” for the payment of pensions. But that’s not true.
Our federal government has been financially irresponsible, spending too much over many years. The “Social Security money” has been spent for other purposes. “IOUs” have been put in the Social Security fund. That means general taxes on the American people eventually will have to be paid to make the IOUs good when retirement benefits have to be paid in future years.
With taxes now too high, and with the federal government spending billions of dollars more than it is collecting in taxes, the national debt is $13.2 trillion. People are worrying about how payments will be made.
How and by whom will the national debt be paid, if ever? How and from whom will taxes be collected to make good the Social Security promises?
“Payday” must come “someday.” With government deeply in debt, and more debt being added, few people want to consider raising any taxes.
Most people — especially politicians who have to run for election — don’t want to talk about it.
But some say taxes must be raised — or the retirement age must be advanced to, say, 70 — or both.
You won’t find anyone running for office suggesting that Social Security benefits should be “cut,” or that taxes should be raised, because millions of people would be adversely affected.
We currently are spending more each year than taxes are bringing in, and promises for future pay-outs are increasing. What will happen when reality strikes?
Many just shrug and say, “It won’t happen in my lifetime.”
But do we who love our children want to pass our national economic irresponsibility problems off to them and our grandchildren by our refusal to face facts today?