Of course it does. Government doesn't let collected money sit idle. It spends it.
But it also has to do with people living longer than they were expected to back when Social Security was ill-conceived.
And it has to do with the very nature of Social Security. It requires an ever-growing number of contributors in order to make payments to an ever-growing number of retirees.
In 1940, the ratio between the number of covered workers and the number of Social Security beneficiaries was 159.4 to ONE. In 1950, it was 16.5 to ONE. In 1960, 5.1 to ONE. In 1980, 3.2 to ONE. In 2000, 3.4 to ONE. In 2013, 2.8 to ONE.
Do you see a problem here? Social Security is a PONZI SCHEME, pure and simple. When the number of people paying into the program starts to decrease, the program collapses.
Fortunately, we have an unbacked currency and a government that will print whatever it needs in or to avoid financial default. But printing of money - especially in the amounts that are now being demanded by Social Security and Medicare beneficiaries - has severe consequences.
More than two million present-day dollars is owed PER American family. While the government can print dollars and thereby avoid defaulting, it cannot print VALUE. That has to come from people like you and me, and we do NOT have it. The result will be the collapse of our monetary system. It is unavoidable and will happen soon. Ten years... fifteen years... twenty years, tops.
Anyone who is informed yet still thinks Social Security and Medicare can survive is simply a fool.
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