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Kicking False Enthusiasm to the Curb
April 25th 03:09:46 PM

"[T]he government definitely isn't the best person to manage your money," writes Dan Caplinger of the Motley Fool, a personal finance and investment company.  In his article, Caplinger suggests sarcastically that people should be pleased about the 2007 OASDI Trustees Report, which forecasts that the Social Security trust fund will run out in 2041, a whole year later than the 2006 report predicted!

Amazingly, two papers actually did trumpet this additional year as the most important conclusion of the report.  "Social Security funds to last longer," enthused an El Paso Times headline.  Not to be outdone was the Indiana Gazette, which boldly proclaimed, "Social Security gets new life."  A new life?  Of one year? 

Perhaps the reporters saw the title of another article: "Social Security Is Saved!" That is the title Caplinger used, and the difference was that he was kidding.  From the Motley Fool: 

One more year!
The report starts out with some great news: Social Security and Medicare won't run out of money as quickly as previously expected. According to current projects, Medicare will remain solvent until 2019, while Social Security will keep chugging along until 2041. Both figures represent an extra year of solvency compared with last year's report.

Of course, you might not be satisfied with that prognosis, especially if you're 35 or younger. Luckily, the Social Security trustees are thinking about you, too. To keep the programs going for another 75 years, we can choose from two easy solutions:

  • Raise payroll taxes by about 2%, from the current 12.4% for Social Security programs to 14.35%; or
  • Immediately cut all benefits by about 13%.

Doesn't that make you feel better?

Two people didn't realize the question is rhetorical and sarcastic.  Here's a hint: one of them lives in El Paso.



Posted by Ryan Lynch
 

 

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