The Social Security Ponzi Scheme Is Crumbling: Massive Cuts Or Tax Hikes Coming
The comments below are an edited and abridged synopsis of an article by Mac Slavo
In 15 years, Social Security in the US will run out of money. When the benefits get cut, they will drop by 25%, around 2034, when there are too many people using the government Ponzi scheme and not enough paying into it, or taxes will be increased.
According to the Federal Reserve, one-quarter of those who are currently nearing retirement are going to be able to shrug off cuts in Social Security. The rest are going to be in real financial trouble. Most have no passive income and next to nothing in private retirement plans. Far too many have hung their future on a Ponzi scheme.
The Fed looked at the balance sheets of those currently in their 50s who are nearing retirement. For the middle 50% of income earners, Social Security accounts for somewhere between 47% and 64% of their total retirement wealth. For those in the bottom 25%, it’s nearly all of it. They hold, on average, just $28,000 in private retirement plans. Even the figures at the top are not that good. The top 25% of earners might look all right, but they are averaged in the Fed data, so they include billionaires as well.
No one knows if the government will demand higher taxes so that workers can pay for the Ponzi scheme, or if massive cuts to the program will be made. No one is talking about the one solution that won’t cost anyone anything they don’t want to pay. A completely voluntary system not run on force and theft: privatizing social security.
Social Security now has a $32 trillion shortfall. Imagine being taxed enough to cover that! Not many want a solution, because that would solve the problem, proving the government’s incompetence.