01-04-2017, 01:27 PM
(01-04-2017, 01:20 AM)Warren Dew Wrote:(01-03-2017, 04:36 PM)Eric the Green Wrote: Social Security and Medicare are not problems, and are not the cause of the debt. They are paid-for programs. Relatively speaking, Social Security is better paid for than Medicare, but basically it's the same deal.
False. Social Security has unfunded liabilities of $32 trillion, not counting Medicare. That dwarfs the nominal debt of $17 trillion or so.
No, this accounting scheme that assumes future liabilities but not future credits or adjustments is nonsense on stilts. No annuity program has the longevity and consistent liquidity of the OASDI system.
We already know that human longevity increases over time, so adjustments are needed. Likewise, birthrates are not consistent and must be accommodated. In no case can this not be resolved by small adjustments if they are made far in advance ... like right now! The cap on taxable income needs to be removed. That will resolve everything identified at this point and some as yet undetermined future events as well.
Intelligence is not knowledge and knowledge is not wisdom, but they all play well together.