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Social Security Will Run Out Of Money By 2029 Because Of COVID-19
Posted by: Simon Black ()
Date: May 21, 2020 05:44PM

Social Security will run out of money in 2029 because of Covid

Simon Black | May 21, 2020
Bahia Beach, Puerto Rico

The CDC’s National Center for Health Statistics released some alarming data earlier this week that surprisingly had absolutely nothing to do with Covid for a change.

The report showed that the birthrate in the United States last year declined to its lowest level on record ever since the government began collecting data more than 110 years ago.

This new record low birth rate breaks the previous record set in 2018, which broke the previous record set in 2017, which broke the previous record set in 2016. . .

You get the idea. This has been a long-term issue: people just aren’t having babies anymore. And it’s not just in the Land of the Free.

Fertility rates are low all over the developed world– far below the ‘population replacement level’ of around 2.2 children per mother.

(This is the number of children that demographers say will maintain a steady population.)

In the United States, the average number of births per mother is currently about 1.7. In Australia it’s also around 1.7. In Spain, it’s just 1.5. In Japan, 1.44. In Italy, 1.31. In South Korea, 0.92. And in Singapore, just 0.83.

This list goes on and on. And the fertility rates in most of these countries are hovering near record lows.

Even many large, developing countries have low or declining fertility rates.

In Brazil, for example, the average woman has 1.74 children, which is below the population replacement level. And the rate has been falling steadily for decades.

Even India’s birth rate has been declining, down to just 2.24– less than half the level from the 1980s.

And these statistics were pre-Covid. It certainly stands to reason that with all the economic uncertainty and virus fears, people will delay having children, and potentially have fewer.

This is pretty normal in any economic crisis; according to IMF data, birth rates worldwide plunged following the Great Recession of 2008/2009.

Now, it’s not like a low fertility rate means that some country is going to vanish into the history books.

In Spain, the population declines by an average of just 0.21% per year. And Japan’s population declines by roughly 0.12% per year.

These are trivial numbers… unless you’re thinking about Social Security and national pension funds.

The idea behind most social security programs around the world is that everyone with a job gives up a portion of his/her wages to pay monthly benefits to people who are currently retired.

We do this for our entire careers, with the promise that, when we reach retirement age, the younger generations will pay for our benefits.

This scheme clearly requires a steadily rising population in order to be sustainable:

If you have 1 person receiving benefits today, you’d need 3-4 people paying taxes to support that single beneficiary.

After a few decades, those 3-4 would be retired, requiring around 10-15 workers to support them. And when those 10-15 people retire, you’d need 30-50 workers to support them.

It’s easy to see why low birth rates and declining populations can cause these social security programs to fail.

But Covid is having an even deeper impact on these programs. Because in addition to making the fertility problem worse, Covid has also vanquished tax revenue.

In the US, for example, Social Security is funded almost exclusively by payroll taxes. So when tens of millions of people lose their jobs, payroll tax revenue declines, and Social Security runs a big deficit.

I’ve been writing about this for years: Social Security is already in deep trouble.

The program’s Trustees (which include the Treasury Secretary of the United States) write in their most recent annual report that Social Security’s trust funds will run out of money by 2035.

Again, though, that was pre-Covid. Financial crises tend to make these things a lot worse.

Back in 2007, the last year before the Great Recession, Social Security projected it would run out of money in 2041.

But the financial crisis took such a toll that, after it was over, they revised their projected insolvency date down to 2035.

Social Security hasn’t updated its projection yet to incorporate the Covid impact, and they probably won’t until next year.

But the Bipartisan Policy Center ran the numbers using Social Security’s own financial model. And according to their analysis, Social Security is now set to run out of money in 2029.

That might seem like a long time from now, but from a retirement prospective, it’s just around the corner.

And options for Social Security are extremely limited; the government will either have to (a) radically increase payroll tax rates, and/or (b) make drastic cuts to the monthly benefit they’ve been promising people for decades.

Neither option is good, and most likely they’ll end up doing a combination of both. But not yet.

As this pandemic has proven, they’ll wait until it becomes a major catastrophe before even acknowledging the problem, and then they’ll overreact with worst Draconian measures imaginable.

But any rational person who thinks long-term, however, still has time to plan.

https://www.sovereignman.com/trends/social-security-will-run-out-of-money-in-2029-because-of-covid-27781/

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Re: Social Security Will Run Out Of Money By 2029 Because Of COVID-19
Posted by: GlicerinEBAG ()
Date: January 12, 2021 07:10AM

Covid has definitely had a very bad impact on many people and on the economy in general, which is why I recommend that those who lost their jobs go to unemployment specialists, because these guys are ready for such situations and have already helped many people who lost their earnings last year and lost their jobs. I can recommend pre pack administration because it helped my father and mother find a good place in the fall and secure their lives for this year. I believe that everything will be better if we help each other in this difficult time



Edited 1 time(s). Last edit at 01/14/2021 07:05AM by GlicerinEBAG.

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Re: Social Security Will Run Out Of Money By 2029 Because Of COVID-19
Posted by: Darn it ()
Date: January 12, 2021 08:42AM

I thought covid was supposed to help by "removing" a good number of those collecting ss.

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Re: Social Security Will Run Out Of Money By 2029 Because Of COVID-19
Posted by: Ghost of 2001 ()
Date: January 12, 2021 08:52AM

Be honest. Social Security will be running out of money because back in 2001 Republicans thought it was more important to give their backers huge tax breaks than it was to fund the government.

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Re: Social Security Will Run Out Of Money By 2029 Because Of COVID-19
Posted by: Patrick M ()
Date: January 12, 2021 10:31AM

Sure pal.

In 1978 they swore that the earth would freeze to oblivion in ten years because of the hole in the ozone.

Libtards always need something to be afraid of.

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Re: Social Security Will Run Out Of Money By 2029 Because Of COVID-19
Posted by: Libtard Bulova ()
Date: January 12, 2021 12:37PM

If you are living to depend on your monthly SS check, pls hang yourself.
You are the reason the leftists want to be lazy with UBI.

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Re: Social Security Will Run Out Of Money By 2029 Because Of COVID-19
Posted by: Contemporary Reporting ()
Date: January 12, 2021 12:59PM

Patrick M Wrote:
-------------------------------------------------------
> Sure pal.


CBO: Social Security funds needed to balance books
August 29, 2001

This year's federal budget surplus has plunged to $153 billion because of the nation's economic doldrums and the Bush administration's tax cut, meaning the federal government will have to cover $9 billion of spending by dipping into Social Security, the nonpartisan Congressional Budget Office projected Tuesday.

I realize you don't want to hear anything which does not fit your partisan agenda. That isn't something we have made up more recently. It is what the CBO was saying at the time.

Also the Ozone hole wasn't supposed to freeze the Earth. It would let in additional radiation.

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Re: Social Security Will Run Out Of Money By 2029 Because Of COVID-19
Posted by: m9vcn ()
Date: January 12, 2021 01:42PM

Contemporary Reporting Wrote:
-------------------------------------------------------
> Also the Ozone hole wasn't supposed to freeze the
> Earth. It would let in additional radiation.

The ozone hole was real, but it was largely mitigated by getting rid of certain pollutants, and also some natural effects.


However, poster is correct that they told us in the 70s the earth would be frozen and we'd all be dead. And more recently, Gore said that NYC and DC would be underwater by now.

I blame Gore for people not believing in science anymore. His wild politically motivated hyperbole and theatrics (which did not comport with the science) and hysteria has pretty well effectively fucked us all.

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Re: Social Security Will Run Out Of Money By 2029 Because Of COVID-19
Posted by: Get Rid Of the Leeches ()
Date: January 12, 2021 02:45PM

First get rid of the Democrats who pumped money give aways to leeches that were never supposed be be in the SS program in the first place , the truly disabled of any age are not the leech , the fat lazy and younger fakes are whose only ailment is allergy to work and vote D

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Re: Social Security Will Run Out Of Money By 2029 Because Of COVID-19
Posted by: Just sayn ()
Date: January 12, 2021 07:38PM

Get Rid Of the Leeches Wrote:
-------------------------------------------------------
> First get rid of the Democrats who pumped money
> give aways to leeches that were never supposed be
> be in the SS program in the first place , the
> truly disabled of any age are not the leech , the
> fat lazy and younger fakes are whose only ailment
> is allergy to work and vote D


That sounds like many red state residents except voting blue

More whites on the government tit than any other group

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Re: Social Security Will Run Out Of Money By 2029 Because Of COVID-19
Posted by: unsurprised_one_8 ()
Date: January 12, 2021 08:01PM

Maybe republicans should have let the fund grow year on year instead of skimming it to make up for budget cuts they made to critical programs in order to convince their constituents they were saving them money from taxes. Very stupid. Fuck the GOP!

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Re: Social Security Will Run Out Of Money By 2029 Because Of COVID-19
Posted by: Jus Saying ()
Date: January 12, 2021 08:21PM

>More whites on the government tit than any other group

You show your racist Democrat roots as race was never metioned in that post but you had to interject race because your the real racist . Blue not black white or any other color of humans is the leech creator who is siphoning SS's well of money dry

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Re: Social Security Will Run Out Of Money By 2029 Because Of COVID-19
Posted by: Gonverment cheese ()
Date: January 12, 2021 09:38PM

SS aint going any where. Your income taxes are going up.

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