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Social Security Insolvency in a Nutshell. Well, Amost.
The point of full Social Security trust fund depletion is rapidly coming into view, a prospect magnified by the Old-Age and Survivors Insurance Trust Fund’s reserves dropping by $200 billion in 2025 alone. People are starting to notice, perhaps even Congress, and this recognition is beginning to spark animated discussions on the causes and implications of reaching insolvency. Yesterday, Fox26houston.com aired a discussion with a panel of five people, each with varying degrees of expertise and interests, debating the causes of the problem and broad solutions to address it. The dialog is interesting, some of it on the mark, some of it not, but a worthwhile video segment to view.
The panelists differ on the extent of fraud in Social Security, but agree that its divergence from 21st-century demographics is a major cause. That’s true, of course, but the discussion glosses over one of the most significant problems, that being the imbalance in the amount of taxable payroll dropping well below assumptions built into the program decades ago. One “solution” offered in the exchange is a FICA increase and removal of the taxable maximum, neither of which on their own would solve the problem. In any event, it’s interesting to see the kinds of forums popping up.