Does one pay the piper anymore? It seems as though someone’s been forgetting to:

Social Security paid out nearly $71 billion more to retirees and other beneficiaries than it collected in tax revenue in 2013. This is the fourth straight year the retirement and disability programs are running cash-flow deficits, as highlighted in today’s trustee report.

Deficits are only growing worse. The trustees project $80 billion in deficits in 2014, which will more than double before the end of the decade. At $110 billion in average annual deficits throughout the next decade, the combined programs are facing more than a trillion dollars in deficits just over the next 10 years.

Social Security’s reported long-term (through the end of 2088) unfunded obligation of $10.6 trillion is further exacerbated by the $2.8 trillion in IOUs in the old-age security (OAS) and disability insurance (DI) trust funds.

Simply put, the Social Security Accounts Receivable was $71,000,000,000.00 less than the SS Accounts Payable for last year. And that’s without even looking at the other years data.

So, what ought to be done? In most businesses (assuming they weren’t already bankrupt from such a differential) people would either need to increase revenues or cut costs, or both.

Increasing revenues to SS would have the nearly immediate benefit of constricting the economy further than it already is. Cutting costs involves telling people who have been paying into the system for years that their investments haven’t really amounted to anything.

As one of the people who will be losing his SS investment, I’m in favor of the second approach, despite the fact that it will be painful. Of course, it’s not as though I’m really losing anything.

For the most part, ignoring problems does not cause them to go away. Though, if we ignore problems for long enough, we end up going away and the problems are inherited by our children. Sounds kind of selfish, doesn’t it?

 

P&R pens an excellent piece on paying attention to what things really cost.

Bottom line? Nothing (materially speaking) is free. You and I are paying for it somehow. It had better be worth it.

Bill Whittle speaks to just how wrong the idea that “it takes a village” really is.

Anybody got a shovel?

It doesn’t truly make the world go ’round, but it certainly makes my head spin from time to time: money.

Charity says, “No, we won’t explain how we spent the $300,000,000 you all gave us.” It may be too late to get that money back, but I’d recommend giving elsewhere next time. In fact, don’t give to charity if you can give directly to a needy person (preferably through a person you trust so you can remain anonymous).

New head of the IRS is a miracle maker on the make. He’s going to restore something which has not existed for a number of years.

And finally, a brief treatise (if such can be true) on debt.

Visible here. Wow.

Do we have another option?

It’s decision day in South Dakota. I’ve not yet seen numbers from the primaries, but I’m guessing that this round of the battle for the senate goes to, well, enough said.

P&R has a very good question: “When Obama haggles with a car dealer, does he end up paying more than what the dealer initially asked?

How did the EPA become more powerful than the average country? The same way a country becomes more powerful than its neighbors: it keeps doing stuff until someone tells it to stop. It’s time to put the brakes on the EPA.

 

I’m a gun owner and I want gun control

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