Tuesday, May 12, 2009

Recession / Unemployment hits Social Security Hard

Today CNN reports that because of the Great Recession, the social security trust fund is likely to go bust 4 years earlier than previously expected.

Now the experts speculate that the fund will be insolvant in 2037 vs. 2041 in the prior year's forecast.

The main problems are that there is higher demand for Social Security benefits while there is less money coming in---As unemployment creeps up, FICA withholdings decline.

This pending crisis in funding of America's social programs was highlighted in last year's movie IOUSA. A short clip is shown below: And a 32 minute version of IOUSA movie is available on youtube.

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