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Young Conservatives ask, “Why is Social Security Failing?”

The massive Social Security program constitutes 37 per cent of the governments expenditure and 7 per cent of GDP, according to M. Feldstein’s article Rethinking Social Insurance, which was published in the American Economic Review in 2005. The author says that people who have paid into it the most, are the ones who are going to be left with nothing. That is because the money is depleting at a rapid rate, and nobody is legally entitled to social security money even though everyone has to pay into it. The government does not have to pay a dime to anyone. This was made clear in the Supreme Court Ruling in Flemming v. Nestor (1960).

Why is Social Security Failing?

According to a report by the Associated Press written in May, 2009, Social Security will pay out more in benefits than it collects in taxes by 2016, and the pot will be completely depleted 2037. The end of Social Security will come four years sooner than predicted because of the latest recession which led to greater unemployment and less Social Security funds to collect.

Treasury Secretary Timothy Geithner, the head of the trustees group, said that the Social Security annual surplus will be completely gone by 2016 because of the increased demands from the 78 million baby boomers in line to retire. A report by the Heritage Foundation states that “younger workers are especially aware that Social Security will not be able to provide the benefits they have been promised when they retire.” This is because the WWI and WWII Generation paid very little into the program, yet they received the greatest benefits. When the Baby Boomers start retiring, the system will be shocked and fall apart completely.

Why is Social Security Still Around?

Social security still exists because the American government uses fear tactics to save it. By saying that killing social security will kill the financial stability and preferred lifestyle of our grandparents, our parents, ourselves, and our children, the program sticks around. It is also such a massive and complex program, that most are too overwhelmed to even think about combating it. It is easy to listen to soundbites put out by politicians  that social security will help people in old age. That is comforting, safe, and easy. But the opposite is true. Social security won’t help everyone in old age, and when the Boomers break the door down to retirement, with a longer life expectancy than ever before, Social Security will reveal itself to be insecure and dangerous. The current system is not only social insecurity, it is financial suicide.

Social Security Reform

Social Security is not the titanium walker the government promised, rather a wobbly crutch with too much weight to support. The Social Security crutch has too many splinters and cracks that cannot be fixed with duct tape and glue alone. Citizens need to learn to walk on their own two feet and help others do the same. When people understand the importance of personal wealth, rather than government wealth, then less citizens will have to rely on the government to get them get by until they pass. With a little faith and financial education, we can do better for ourselves.

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