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De Omnibus Dubitandum - Lux Veritas

Saturday, February 13, 2016

Is Social Security Doomed?

By Rich Kozlovich

During the debates not one moderator asked one candidate what they would do about the national debt and how they were going to save Social Security.
 
 
 
"By taking a longer view and broader view, however, Boston University economics professor Laurence Kotlikoff calculates that the difference between the government’s promises and its revenues, discounted to present value, is $222 trillion, or nearly 14 times the country’s gross domestic output. He points out that most people don’t know that the difference is that large because so many of those promises are kept off the books and consequently are not counted when the national debt is calculated:"
 
You want to put everything on an even footing. Most of the liabilities the government has incurred in the postwar period have been kept off the books because of the way we've labeled our receipts and payments. The government has gone out of its way to run up a Ponzi scheme and keep evidence of that off the books by using language to make it appear that we have a small debt.
 
"So, just how much of that $222 trillion belongs to Social Security? NBC News’ Business Editor Stephen Ohlemacher did the math and concluded that it’s $134 trillion, or eight times the country’s GDP......"
 

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