What happens when a business makes more monetary promises than it can fulfill? Its assets are liquidated so that the proceeds can go towards paying off some of those promises. What happens when a government makes more monetary promises than it can fulfill? That seems like an important question to ask right now:
You can look at the financial health of Social Security in many ways.
Despite the huge numbers, there’s even a less generous way of looking at the fiscal shortfall.
A projection, known as the “infinite horizon,” takes into account all the program’s future liabilities, even those beyond the 75-year period that Social Security actuaries typically use in their calculations.
Under the infinite horizon, Social Security will have $32.1 trillion in unfunded liabilities by 2090, $6.3 trillion more than last year’s projection. (See the chart below.)
Social Security was sold as a safety net that would guarantee that retirees would have money even after they were no longer working. But like all government schemes, Social Security was just another mechanism to expropriate wealth from the people for the benefit of the State. The scheme was originally quite simple. Today’s valued dollars would be taken by the State so it could use them as it pleased and then returned at a future date after inflation had devalued those dollars significantly. But the scheme quickly became more complicated.
Since 1982 Social Security has been paying out more than it has been bringing in. This deficit, often referred to by cute names such as unfunded obligations or unfunded liabilities, is slated to ballon to $32.1 trillion by 2090. To put that in perspective, the current national debt is hovering near $20 trillion.
If Social Security (or the United States government for that matter) was a business it would be forced to file bankruptcy as there is no realistic way that it will ever be able to repay its debts.
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