Social Security : The Titanic of our Time

"More than eight in 10 Americans now see the country’s Social Security system as headed for a crisis, and most think a major overhaul is in order, according to a new Washington Post-ABC News poll."(Washington Post)

One of the lesser talked about crises is that of social security. While we talk about reducing the deficit our officials don't like to talk about the growing deficit that is social security. Sense its creation it has been raided by one administration after the next. The funds have gone to paying for a large number of pet projects, many of which now are on the chopping block. So what will be come of the National Retirement plan? If our recession and deficit grow, will we limit or cut those on social security? If it comes down to funding our parents retirement of paying for infrastructure who will win?

To understand the true magnitude of the problem I will give a little back ground to the program. In a nut shell social security was created to get older people out of the work force to provide opening for new young employees to get there start in the work world. Social security is base off a ponzi scheme. Basically the workers pay into this program to pay for those that are retired, and once they retire the younger generation pays for there retirement and so forth.

This plan works only if there are more workers then retirees. However with people living longer and the population having a high percent of retirees, the percent of people working to retiring is becoming less. What this means is that we either have to increase the amount each worker pays into the system, to off set the difference, or give less benefits to those that have social security. However neither of these plans seem favorable to most people in the system. People don't want to lose benefit or want to pay more into the system. So in the end a deficit and inflation is the only option.

This topic will be a hot button issue during the 2012 campaign season, it will be interesting to see what candidates on both sides of the political world think about reform. For whatever reform we do in act someone is going to get the short end of the stick. I wonder which generation will in the end call the shots?