Wednesday, August 19, 2009

An Ugly, No Good, Very Bad Chart

If you look at the image to the left you can see that the finances for social security have gone to crap as a result of the recession. In the current year it appears that social security will break even, i.e. there will be enough money coming in to pay out benefits, but not a penny more. Further, it looks like the point at which Social Security will take in less money than it pays out will move forward from late next decade to the middle of the decade (or about 6 years out). Given that the trust fund does not have actual assets or fungible debt it will be interesting to see how the politics of Social Security evolve. For one, I expect a lot of people to stop talking about how the trust fund will maintain Social Security's solvency till 2042.

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