America's Demographic Cliff: The Real Issue In The Coming, And All Future Presidential Elections

Tyler Durden's picture

In four months the debate over America's Fiscal cliff will come to a crescendo, and if Goldman is correct (and in this case it likely is), it will probably be resolved in some sort of compromise, but not before the market swoons in a replica of the August 2011 pre- and post-debt ceiling fiasco: after all politicians only act when they (and their more influential, read richer, voters and lobbyists) see one or two 0's in their 401(k)s get chopped off. But while the Fiscal cliff is unlikely to be a key point of contention far past December, another cliff is only starting to be appreciated, let alone priced in: America's Demographic cliff, which in a decade or two will put Japan's ongoing demographic crunch to shame, and with barely 2 US workers for every retired person in 2035, we can see why both presidential candidates are doing their darnedest to skirt around the key issue that is at stake not only now, be every day hence.

Sadly, the market which due to central-planner meddling, has long lost its discounting capabilities, and is now merely a reactive mechanism, will ignore this biggest threat to the US financial system until it is far too late. After all it is the unsustainability of America's $100+ trillion in underfunded welfare liabilities that is the biggest danger to preserving the American way of life, and will be the sticking point in the presidential election in 80 days. However, don't expect either candidate to have a resolution to the demographic catastrophe into which America is headed for one simple reason. There is none. 

The problem in a nutshell: the first wave of Baby Boomers, born between the years of 1946 and 1964, officially reached retirement age in 2011. There are a whole lot of Baby Boomers - just under 76 million, to be exact - that will depend on new money flowing into the system to help keep the entitlements coming. According to the latest Social Security and Medicare Board of Trustees 2012 Annual Reports Social Security now pays out more than it takes in, and is expected to do so for the next 75 years. 

And while the market, and its "discounting" may now be largely irrelevant, those who care to be educated about the facts behind America's Demographic Cliff, here is ConvergEx and "Talkin' 'bout your generation"

According to the Census Bureau’s Current Population Survey, about 40.2 million people – 13% of the entire US population – are 65 years or older and eligible to receive government entitlements such as Medicare and Social Security. At current levels, spending on these entitlements make up about 8.7% of GDP – about $1.3 trillion. While this may sound sustainable over the short term, in coming years the amount of entitlement outlays necessary to keep up with retiring Baby Boomers is going to send spending through the roof. By 2030, for example, a full 19.3% of the population will be claiming SSI and Medicare benefits, based on the Census Bureau’s population projections (the CB uses an adjustment factor for the age cohorts based on mortality rates, foreign-born immigration, and life expectancy). For simplicity’s sake, here’s a decade-by-decade look at where the aging population – and expenditures – will be in the years to come, courtesy of the Census Bureau and the Congressional Budget Office (CBO):

  • In 1900, 4.1% of the US population was 65+. By 1950, this number had almost doubled to 8.1%. As the chart following the text shows, the Baby Boomers (now ages 48-66) represent the most significant population wave in US history. According to the CBO, the population aged 65 and over will increase by 87% over the next 25 years as Baby Boomers enter retirement, compared to an increase of only 12% in those aged 20-64.
  • This year, 13% of the US population is 65+ and entitlement spending accounts for 8.7% of GDP. And that number only includes SSI and Medicare, not Medicaid and future Obamacare subsidies which add to these outlays.
  • In 10 years (2022): 16.1% of the population will be 65+, entitlement spending estimated at 9.6% ($1.5 trillion, based on 2011 US GDP)
  • 2037 (25 years on): 20 % of the US population will be 65+, entitlement spending estimated at 12.2% of GDP ($2.0 trillion)
  • Not surprisingly, there will be far more women than men in the 65+ population. Women currently live about five years longer than their male peers, on average. Accordingly, the Census Bureau estimates that in 2030, there will be about 8 million more women than men that are 65 and older by 2030: 27.8 million versus 35.7 million.

It’s a pretty tough picture, to say the least; as the population ages, we’re looking at more and more money dedicated to retirement benefits with a smaller workforce to fund the spending. We’re not the only ones, either: Japan is in worse shape than the US, with 23.1% of the population already over 65. In 2050, government statistics forecast that number to be 39.6%. Europe’s in the same boat: 17.4% of the population in EU countries was 65+ in 2010, and it’s expected to be about 30% by 2060. The developed world, essentially, is facing a demographic “Fiscal cliff” with no clear-cut strategies for how to fund the liabilities inherent in an entirely predictably aging population

Are there any social positives that might mitigate this plethora of indisputable financial concerns?  The math is the math, as quants are fond of saying, so I don’t expect that there are overwhelming offsets to the problem of an aging population.  But there are some notable “Positives” which don’t get the attention they deserve because they offer such a lightweight counterbalance to the challenges I outlined above.  Still, here are a few thoughts:

  1. Stronger voter turnout/greater engagement in the political process. The 65+ age group has beaten out every other age cohort in voter turnout in every Presidential and Congressional election since 1980. In the latest presidential election, 68.1% of those aged 65+ went to the polls, versus and average of 51.2% for the rest of the voting-age population. The reason for this differential is straightforward: it easier for retired persons to vote given fewer time restrictions, allowing the higher turnout rate. But given an average turnout of 58.2% overall in 2008 for Obama’s election, compared to an average of 70-80% in other developed countries (Japan, Germany, Canada, Spain), the growing 65+ population will certainly help the U.S. come closer to its developed country peers on this metric.

    The stronger turnout of these voters, and their sheer numbers, are also likely to have an important impact on US political races in the years to come. They’re going to be the biggest voting bloc in American history, if patterns hold: 68% of them is almost 52 million, larger than the entire Black/African American voter population, for example. And like other older generations, according to a study by the Pew Research Center done in late 2011, Boomers have become slightly more conservative as they’ve aged, and slightly more of them (45% vs. 51%) intend to vote for Governor Romney in the upcoming election. However, given that one of their main concerns is the maintenance of entitlement spending, it seems unlikely that Boomers will continue to support a party that recommends reducing the deficit by cutting entitlements. All candidates, then, and especially the GOP, will need to take a hard look at the wants and needs of the Boomers. The 2012 Presidential election – and many others afterwards - will quite literally depend on their votes. 

  2. Lower crime rates. The younger population is by far the more crime-prone age cohort, according to the Department of Justice and the FBI Uniform Crime report. The DOJ publishes an annual report on arrests by age, the first occurring in 1980 and the latest in 2009. Over these years, the number of total arrests has increased by 30.9% for the entire population; for the 65+ population, it’s gone up 0.3%. Moreover, the Baby Boomer generation (in 2009, ages 45-53) accounted for only about 7% of all crimes. What were their most “Popular” crimes? Drunkeness and DUI. Violent crimes are almost exclusively the MO of the 18-29 cohort, who account for almost half (44%) of all arrests. It’s not too far of a stretch, then, to think that as our population ages, we can expect less and less violent crime across the country – though you may want to be careful on the roads.
  3. Lower resource consumption. The older population tends to cut down on resource consumption after retirement, particularly in the case of gasoline. Once they no longer need to commute to work and move into smaller, more affordable houses, the amount of fuel needed for transportation and heating/cooling should drop, perhaps significantly.

    Take motor gasoline usage as a benchmark. Just under 60 million Baby Boomers consider themselves a part of the labor force, according to BLS data. 85% of all Americans drive to work, according to a late 2010 Gallup poll, with an average commute of 30 miles round-trip – about 45 minutes – and an average of 20mpg (courtesy of the Bureau of Transportation Statistics). Using these estimates, we can calculate that the average Baby Boomer commuter uses about 33 gallons of gas each month; assuming that 85% of them drive every day, that’s about 1.7 billion gallons of gas being used per month.  As they retire, there are actually fewer new entrants into the workforce to replace them, meaning fewer drivers and less fuel consumption.

  4. Growing domestic service economy. An older population becomes more and more dependent on services as they age, particularly in the realms of healthcare and transportation. More and more people will be needed to fill the void in these service areas as the Boomers retire. Luckily for the US workforce, these are jobs that can’t be outsourced: healthcare especially depends on on-site care and personal service.

    In fact, as the population has begun to age, the US has already seen some steady growth in service-related positions. The BLS’s Occupational Employment data logs the number of occupations across the US in major industry sectors as well as almost 800 detailed occupations. According to the survey, the US has seen a -3.3% drop in job growth overall. Healthcare and “Personal Care”, however, have grown 13% and 11% each since that year. Occupations such as physician’s assistants, pharmacy technicians, and home health aides are in high demand, and will most likely continue to be so as the population ages and begins to rely more heavily on these services.

  5. Declining unemployment and increased labor force participation for this segment of the workforce. One of the most unique aspects of today’s aging population is their continued presence in the workforce. According to the BLS, 23.4% of Americans age 65+ were in the labor force as of June 2012, making up a full 4.5% of the total civilian labor force. They also had a below-average unemployment rate of 6.9%. If this trend continues, we’re likely to see more productivity from the upper end of the age spectrum in years to come as Boomers delay retirement in favor of working.

    On the flip side, as more of the aging population retires and leaves the workforce, more job opportunities will open up for those who are currently unemployed. The youngest members of the workforce, ages 18-24, will be the biggest beneficiaries of this shift, as they typically seek the same kind of jobs that the older population currently occupies. When these positions are vacated by the older group, then, and refilled by the younger groups, we may see a decline in youth unemployment rates.

    The older workforce also opens an interesting opportunity for some employers. The younger half of the Baby Boomer generation is tech-savvy, experienced, and definitely needs the money. This set of skills won’t go unnoticed in the labor market.

Unfortunately, these societal “benefits” are only a thin silver lining on a very, very dark cloud. Social Security and Medicare spending are projected to grow exponentially as healthcare costs explode and the biggest population wave in the history of the US starts to enter retirement. The Congressional Budget Office expects spending to increase by 150% over the next 25 years, which is hardly sustainable with barely 2 workers for every retired person in 2035... there’s a storm a comin’

Sources here:

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Dr. Sandi's picture

When outrunning a bear, you don't have to be first. You have have to not be LAST.

max2205's picture

Pay the fuck up bitches I plan on collecting the first day I can.

Joseph Jones's picture

Over the past year or so in Ahganistan, members of Afghanistan PD and military caused "10%" of all US military deaths.  USA and its MSM enablers report not all the killers were Al Qaeda.  Some deaths were for "personal vendettas".  The latter, I suppose, is an easier pill for stupid Americans to swallow than the former.

Hey!  Great recruiting slogan!  "Sign up now!  If you die, take comfort in knowing the killer could be our 'ally', not Al Qaeda!"

Damn!  I knew there was awesome fun in the military available no where else!  Sign me up now dude! 



scatterbrains's picture

Hey no one ever said it would be easy protecting/controlling the opium trade routes.

azusgm's picture

Are you forgetting something when you type this:


"Older folks tend to have gotten there by not being the poor dumb bastards who are willing to die for their country."


What was your draft lottery number? For some, the difference between 2 digits and 3 digits was life or death.

Stock Tips Investment's picture

This is a problem that societies have coped successfully throughout the history of mankind. In many cases, wars (with many deaths) were the answer. On other occasions, the elderly were left to die "faster." In our case, I think that the concept of social security will have to change drastically in the following years. Much less developed countries (such as Chile, Colombia and Peru, in South America), have a pension system "private". Each worker "gives" money to an account in your own name which is managed by certain undertakings authorized. They know how much it costs these countries pensions of this population? zero, nothing!. you know what the deficit of these three countries? zero, nothing!. is more, annually have surpluses. Know what the net debt of the governments of these three countries?. zero, nothing! no debt. As you know these countries grow annually? more than 6% per year over the last 12 years. I think we have to learn from "others" who are doing these things better than us.

Stuck on Zero's picture

"Reaction time goes to hell over the years for too many of us. Droneing is for the young."

Actually, slow but skilled reactions are necessary to pilot drones.  The round trip time for communications with a drone can exceed a second.  Patience and slow prediction are the main skills of drone pilots.


Angus McHugepenis's picture

You guys aren't thinking evil enough. In a war, the PTB will use the old folks as live bait, decoys, and warm bodies that appear to be a massive standing army. The enemy will then waste time obliterating the old folks while the young bucks turn the tables.

Oh, and what better way to reduce the debt and pare down the "entitlement crowd" by sending the biggest users of such entitlements into battles that aren't meant to be won.

You gotta think like pure evil to understand just how twisted any government is.

AlphaDawg's picture

Man, we will all die one way or another. Who gives a fuck?

Enjoy your freedom while you have it, historically we have never had it so good. You are some wanker expecting to have some amazing and free life, nice idea but get real.

Historically humans have always got fucked by the people at the top of the food chain.

Get laid, ride the silver bull market and have a few drinks or fuck off

HappyCamper's picture

And you guys just aren’t thinking outside of the box.  Just annex Mexico!  Willingly or unwillingly, who cares?  We get enthusiastic and cheap workers, senoraitas, better enchiladas, and favorable demographics.  They get real football, California, and a chance to chase the American dream. 

Best of all, they don’t bring Sharia law with them.

AlphaDawg's picture

Fuck off racist cunt.

Muslims are good people, the zionist hate them and propaganda is against them.

Are you a retarded child?

moonshadow's picture

you show your intelligence (lack of) every time you put your IQ in print by way of your opinion. and as far as muslims and sharia law, you will change your uninformed opinion when the knife (figuratively or in reality) is at your throat. Islam is different than other religions in that Many of it's adherents feel it is justified/sanctioned by their religious leaders and books to Force us who they deem unbelievers into submission to their god. and if you think that the muslims who are 'good people' will protect you open your eyes and look around at muslim states everywhere. there's nothing racist about telling the truth. and you are the last person who should be calling Others retarded

AlphaDawg's picture

Right man, You are a fuck face.

I have many friends who are muslim and know a lot about many rleigions and scriptures.

I also have an IQ in the top .001% btw, and a mathematics degree from Oxford, and have aquired over a ten million in assets, no debt.

U are just a useless cunt, grow up.

New_Meat's picture

"I also have an IQ in the top .001% btw,..."

Joe Biden posts on ZH?  Who knew?

- Ned

Acorn10012's picture

And he has a ten inch dick and fucked the Queen, the Olsen twins, Pam Anderson, Gillian Anderson, Cooper Anderson, the Stay-Puft Marshmallow Man, Marcia Brady, Hannah Montana, Goober and Gomer.............

Offthebeach's picture

The " Stay Thirsty, My Friends " guy was modeled after him.

He invented Rugby, to be played against himself.
Neal Armstrong found a wrapper from his Cuban cigar collection ob the moon.
He can dunk a basketball from laying down.
He is his most impressive man

Anusocracy's picture

Joe Biden's IQ is in the top .001% of dead people.

HappyCamper's picture

Sorry, I simply don't believe your claims of great IQ and wealth.  Having to resort to profanity to express oneself is a sure sign of low intelligence. 

Now back on topic; my was post was tongue in check, but now that I think about it immigration from the south should perhaps seriously be considered to help with the demographics problem.  They're great workers and great people.

Ronald Regan did it and it turned out ok.  As a people, maybe we in the U.S. are a little too shy about letting more people immigrate here who can help.  OTOH, It's also a shame that those same people may vote for the same soulless and irresponsible politicians who got us into this mess.

The_Dude's picture

Ronald Regan did it and it turned out ok.

You obviouly haven't spent much time in the soon to be failed northern Mexican State of California. If you come to visit, make sure not to make the same mistakes as most do and hide in the American Settlements that still exist or you won't get that warm 3rd world experience.

BTW...I agree with you and expect the planned solution to the economic and demographic cliff is to flood the country with immigrants.  Regrettably, the melting pot concept is dead with most immigrants and now they all look at it as a chance to take over from the weak, non-reproducing Americans and are setting up in enclaves, fighting against pressure to integrate.  Without the integration and Americanization process happening, the 3rd world ideas and cultures they bring with them will take hold and the America you know that was open, accepting and accomodating (wealth, jobs, opportunity) will cease to exist.

I think many are considering an exit.  For the future of my family, I definiitely am.  There is evidence that many of the Elites see this coming and are acquiring their exit paths also.  I just hope it holds togehter long enough for me to make the adjustments necessary.  (FYI...go ahead and call me racist...I will not bother to tell you what you are)

My biggest regret is going to be the millions of Americans that have no options and are trapped watching this once great country turn into a 3rd world cesspool.

i-dog's picture


"I just hope it holds togehter long enough for me to make the adjustments necessary."

I just hope your time window is no longer than 30-60 days ... otherwise, IMO, you'll be SOL. Good luck, either're making the wisest decision for your family (though I'm not confident of there being any "Switzerland" for us under the NWO).

Colonel's picture

"Regrettably, the melting pot concept is dead with most immigrants and now they all look at it as a chance to take over from the weak, non-reproducing Americans and are setting up in enclaves, fighting against pressure to integrate."

Observed that as well. These are not the immigrants of earlier times that were proud to be an American they're just NWO foot soldiers smug in their parasitism, tools that enable the MTB (minions that be) to get around the logistical problems of creating the NWO superstate.

AlphaDawg's picture

Sweet man, believe what you want.

I am also married to a muslim woman, more beautiful than any white woman I have been with.

If you think I am making it up, then thats your problem

Also, have you ever met a muslim? Or just listened to some gimps on tv telling you how evil they are?

jwoop66's picture

I worked in Iraq for a while, and had Iraqi workers.  They told me muslim women shave their pussies.  Is this true?  Does your wife shave her pussy?

FeralSerf's picture

I have met muslims.  Some of them were white.

The implication that muslim and white are mutually exclusive suggests you or someone has made a serious miscalculation of your IQ.

Cabreado's picture

I also have an IQ in the top .001% btw, and a mathematics degree from Oxford, and have aquired over a ten million in assets, no debt.

Good for you.

So then, the problem is that "education" and "wealth" fails to weed out the assholes along the way.

That's why we're here.

Thanks for piping up and being poster boy.



AlphaDawg's picture

Sorry mate, why am I an asshole?

I dont support any government and am actually against multiculturisim as I believe it does not work.

I still believe that people who are muslim are not evil people. If you look at what is being done to the Palestinians, they are angry at the suppression and have waged a war in retaliation, not just attacking because people are of different religions.

I got angry as people are being racist and I, of christian family, have good muslim friends and disagree.

I do have a high IQ and the rest, but I am not perfect either, everyone has problems, but I support peace unlike the trolls on this website.

I actually do not believe an IQ means much either, common sense is a far more powerful tool in life.

malikai's picture

I'll just stick my neck out here and say that apart from your abrasive tone (which elicited the responses above), you're right. I don't buy religion one bit, but for every bad muslim example, one can also find an equally bad Christian, Catholic, Jew, Atheist example. Has anyone heard about the witch burnings in the colonies? How about the Inquisition? Gulag? Take things into historical context before passing such silly negative judgements.

Also, yea, referencing IQ === admittance in eugenics. Be smarter.

DeadFinks's picture

What race are Muslims genius? So, anti-Islam is "racist".  You're a fucking idiot.

boogerbently's picture


Alpha DAWG,

So you support Islam, but not your parents genersation.

That explains a lot.

WhiteNight123129's picture

Religion is a control tool. It is one of the best way to throw the masses at each other´s throats, so they do not go after their respective rulers. That works equally well with nationalism. Same method to throw masses of different countries at each other´s throats instead of toppling their rulers. Ah.!! I almost forgot minorities. Rule 1.03 for ruling a crowd of people: When you have a problem, minorities are also a good way to deflect attention, so the rulers channel your anger toward a particular people, because ... it is convenient. When you have extremely harsh conditions, do something extreme like a human sacrifice or genocide, like the Mayas, or with the Armenians, jews with Hitler, do a mutual genocide lie the Tutsis and Hutus. Rule 1.04 In case you are running out of minorities, nothing to worry about, you can massacre your own people and do random mass killings as with Staline, the Khmers in Cambodia. Rule 1.05 Short of killing them you can starve them to death on purpose, if you have limited ressources and limited amoumt of bullets or gas (Mao followed this advice). There is nothing like a good old mass murder to deflect attention and try to stay in power. Ah!.... The good old notion of human progress... in mass killings technology has shown some remarkable progress indeed, we have used gas in concentration camps in Poland and Germany and nuclear bombs in Japan. Progress people!! Progress! Sometimes we have to wonder if humanity is just a disease of this planet.... And then comes the Plato of the world, the Mozart of the world, the Goethe of the World, the Isaac Newton of the world and so on and so forth... So what do we do? We stay numb in a perplex state trying to make any sense of all of that...

So a lot of people on this blog do not seem to realize that they do not form opinions on their own, they just repeat other people s opinions. Now to form your own opinion, it is a painful process where you have to make mental efforts and sometimes argue with yourself, question your own beliefs. Philosophy helps.. Read Plato the republic (it is freed), and others and make your own opinion. 



centerline's picture

The hero of the thread emerges.  Thank you.  People need to wake the hell up regarding the basic tactics that have been used against them over and over and over.

There is one thing I think is certain though.  The human species is not nearly capable (may never be capable) of really coming to terms with human nature itself.  Cycle after cycle repeating with so much similarity.  But, technology increasing.  Destructive power increasing.  Etc.



Anusocracy's picture

Don't know about your IQ etc, but you are not wrong.

Carnegie_IB's picture

making money is the easy part, your challenge will be keeping it. Truth can be stranger than fiction. 


Carnegie_IB's picture

I have many friends who are muslim and know a lot about many rleigions and scriptures.


Mosab Yousef I understand is working on releasing a film to help the Islam community learn more about Islam.  

so help me understand why Islam is so enthusiastic about following a an ancient child molestor who lived in a cave? 

XF's picture

Mislims are a plague upon the earth.    Humanity will not move forward in any meaningful way until that entire grotesque farce of a "religion" is wiped-out.

Cabreado's picture

The world is being guided further into turmoil by those who enjoy it,

or need it,

enabled by those predisposed, or conditioned, to feed the fire.

It is not religion, it is not race, it is not generation, it is not class --

it is the outliers, willfully or out of ignorance,

sucking the life out of... everything.


FeralSerf's picture

Zionists "are a plague upon the earth. Humanity will not move forward in any meaningful way until that entire grotesque farce of a "religion" is wiped-out."

Read the Talmud and compare it with the Quran and make up your own mind about which is the worst.  

Joseph Jones's picture

Sharia law? 

Right now in NYC exists a law giving legal protection for Rabbis to perform briss (for fee of course), suck the baby's penis of the blood (felate the baby), transmit Herpes to the baby, which herpes caused the baby to die.

I know it's wrong, but I wish you god forsaken Rabbincal scum bags and their sycophants ("Synagogue of Satan", Revelation 2:9, 3:9) would just go kill yourselves.

Keep looking for Muslim terrorsists under rocks you stupid, blind, deaf, and dumb, goyim.

Rabbinical daily prayer: "Thank you g-d for not making me a slave, a woman, nor a gentile."

Michael Hoffman's definition of "Judaism", AKA Rabbinical Talmudism": "The worship of the Judaic male as God."

Rabbis: God argued with the Rabbis, the Rabbis won, now God answers to the Rabbis. 

Anti-semite, James Sobran (RIP): "Not someone who hates Jews, but rather someone hated by certain Jews."

moonshadow's picture

now THAT is what hating and racism looks like. nice lesson by example, jones

Adahy's picture

While I agree that the post was a bit anger-driven; I have to ask:  Do you agree with grown men putting their mouths on 8 day old babies genetals?  I certainly hope not.  I mean, accepting different religions and cultures is one thing, but allowing deviant criminal behavior is quite another.  I didn't even believe it when I read the post.
Then I researched it, and was horrified.

moonshadow's picture

of course not good grief! if that was his only issue i wouldnt have commented. but he DID go just a wee bit further and show his true stripes did he not?

FeralSerf's picture

Racism?  Where in his post was there any "racism"?  Are you suggesting that Talmudic "Jews", aka Ashkenazim or Eastern European Kazarians are a race separate from Caucasians?   What race would that be?  Certainly not Semites like the Palestinians, eh?

Dr. Sandi's picture

Again, the government will have to figure out how to convince the old folks to participate before they can play with them.

Maybe they dangle some extra Medicare credits in front of Granny if she'll just get on the damn bus for a Military Mystery Tour.

Anusocracy's picture

Just tell them the luncheon buffet has been moved to Afghanistan.

Angus McHugepenis's picture

Granny just booked her ticket. I'm taking her to the airport as I write this.

Angus McHugepenis's picture

It's a simple choice. They tell them they can die today if they choose not to participate and all entitlements will be cut off immediately, or they can take their chances on a battlefield and perhaps live another day/week/month with 3 hots and a cot.

Uncle Remus's picture

There may be a non-SciFi derivative of that coming anyway, but likely not what BIGGOV had in mind. And I am not that fond of green.

LMAOLORI's picture



I am surprised no one figured this out yet. Social Security is a wedge issue it will be paid unless the entire government collapses since it is a legally enforceable debt just like any other. Even left as is the only thing that would happen is the benefits would be reduced in the future. The fund does not have the authority to tax, by law it cannot deficit spent.  Social Security is an entirely self funded program ZERO government money goes into Social Security something many don't seem to understand. It has NO EFFECT on the budget period other then when the fund actually cash's in some of it's IOU's like it just started doing. Social Security owned 19% of the debt last year far more then China or any foreign creditor. 

Think about this since it is a legally enforceable debt if anyone actually tried to dismantle the program right now where would they get the money to pay it off remember it was the largest holder of our debt?  If you use entitlement in reference to Social Security in the sense that people are entitled to get back the money they were FORCED to pay in you are correct it's the law. Doesn't matter if it was a Ponzi scheme or not the fault lies with the politicians who passed it into law to begin with long before the boomers who are starting to collect had any say in it. I'm all for reform or getting rid of the program since I don't believe it was Constitutional to begin with but that's water over the damn now just like Obamacare will be in a few years if it's not repealed if you want to correctly phrase something as a welfare program that would be the one that's full of taxes that DO affect the budget. 

Like I said a Wedge issue.

Medicare is the real issue right now that's why they are campaigning on it.


The TRUTH About Who Really Owns All Of America's Debt


Tippoo Sultan's picture

Bullish. Is it any wonder that Kimberly-Clark is making all-time highs ?