Social Security Surplus Disappearing Rapidly

Friday April 10, 2009

Several years ago, it was predicted that fiscal year 2017 would see the drop off of social security, as it began to drag down federal finances. However, recent reports from the White House and the Congressional Budget Office show that social security benefits will actually exceed incoming payroll taxes by about $7 billion. This is the first time that such an occurrence has happened since 1984.

The amount of jobs that are available in the United States are expected to continually decline, while the number of benefits that are paid out to the baby boomers, who will be retiring in upcoming years, will increase. The generations that are now collecting social security may well be the last, unless some dramatic changes are made to the system, or if taxes are increased a great deal.

A recent article in Time magazine tried to give its readers hope, when it pointed out four things to be optimistic about in the economic downturn.

They are:

• The stock market is no longer overpriced.
• The government is on the case.
• Consumers are adjusting to the new economic reality- and fast.
• Reinvention and change are what the U.S. is all about.

Sources: http://www.time.com/time/business/article/0,8599,1890542,00.html