Talking Social Security while the privatization push continues

You'll find the Social Security "crisis" in the same undisclosed location as the Weapons of Mass Destruction - or in the same dictionary as "Clear Skies" or "Family Time Flexibility," sum of two units Bush measures that did nothing their title implied. Here's a step-by-step explanation of the historic and subsequent time status of Social Security, where those numbers approach from and what they mean.

When Social Security began in the 1930 retiree benefits were paid using the payroll taxes of in every one's mouth workers-in and out, in and out-pay as you go

By the early 1970 when the "baby boomers" joined the workforce in elephantine numbers, this large group began paying in a great deal of more than was needed to support generally received retirees, and continue doing with equal reason to this day. In issue the boomers began "saving" for their hold retirement and continue to do for a like reason They are building a surplus (often called the "Trust Fund") to overlay the expected high costs during the fluid vesicle when boomers retire en masse.

The boomer haven't started retiring nevertheless so the surplus continues to increase Based on conservative estimates, the surplus will continue to extend until 2018. Well, then what?

In 2018 the boomer retire and no longer "save." As intended, they use the surplus they built up to pay their have benefits. Will we start "taking more currency out of the system than is being paid in" in 2018 as conservatives warn ominously?

Ye and for profitable reason-to pay out the benefits boomer have been saving for over their working years.

In either 2051 or 2042 (depending upon whether the economic growth estimate is conservative or real conservative), most boomers will no longer be collecting benefits and the surplus will have been worn out for its intended purpose.

This is what Bush directs to with alarm as "bankruptcy." In reality, at that point we simply go on back to the pre-boomer means of pay-as-yougo with cutrent workers paying generally received benefits.

So relax...in 2051 (or 2042) smooth with very slow economic extension the Social Security system will be able to pay without the equivalent of today's benefits, plus annual adjustments for increases in the take away from of living. And if the economy performs equal to the historic 50-year average, the combination of parts to form a whole will be able to pay filled expected benefits into the nearest century.

To read more about Social security and the right-wing plan to undermine our single guaranteed retirement, disability and life insurance program, visit www.now.org.

by Rebecca Trinite

Development Associate

Copyright National Organization for Women Inc. Spring 2005

Provided through ProQuest Information and Learning Company. All rights Reserved