Man I hate this new format. I can't reply directly to any of your posts. Let's start a new thread.
Not only can't they pay it all out at one time they can't even pay this year's total benefits. It's even worse than a Ponzi scheme where they're using your kid's payments to pay your benefits. They're borrowing from the Chinese to pay this year's shortfall. Technically, it's funded for 20+ years. Practically, they've taken all the cash, issued bonds in return and there are not enough payroll taxes collected to pay the benefits going forward so they borrow additional money to pay the redeemed bonds. As long as you assume the government can borrow at 0% interest rates for ever, I guess we're OK. But I believe rates will one day return to average 5% rates and we're in real trouble.
I still hate this new format. I answered this twice and both times it disappeared into the electron free world. In summary, we need to live within our means. Constant deficits make no sense. The entire SS surplus has been raided and we're borrowing from the Chinese to make benefit payments this year. We're leaving a debt burden mess for our children. They'll have to pay their payroll taxes, income taxes and additional income taxes to pay back the SS trust fund that is now filled with worthless US issued bonds. Our elected officials are unwilling to do anything about it. All we hear from the White House is we need to increase taxes on the rich. We don't have a revenue problem we have a spending problem. To me it's just immoral that we've done this to our children.
I can tell you where they can cut it and none of them are even mentioning it. FOREIGN AID, but that is where all of the congressmen get their kickbacks and I have personally seen it. It is the second largest budget item behind defense and they need to quit borrowing to give aid to even the Muslim Brotherhood and the 100s of other govts that hate us.