dire social security warning

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

Hines, James R. Jr. and Timothy Taylor. 2005. "Shortfalls in the Long
Run: Predictions about the Social Security Trust Fund." The Journal of
Economic Perspectives, 19: 2 (Spring): pp. 3-9.
4-5: They quote the 1941 report of the Social Security trustees report,
which warned that the finances of the Social Security system would come
under stress in the long term as the share of the population over age
65 continued to increase:  "Consequently, benefits under the program
are expected to increase markedly over a long period.  This results
from the fact that larger numbers of workers will be eligible and will
qualify for benefits and from the expectation that the proportion of
the population in ages 65 and over, estimated at 7 per-cent in 1940,
may eventually rise to perhaps 14 to 16 percent. Hence the essential
assurance of future financial soundness of the system, with its rising
rate of disbursement, rests on a graduated increase in contribution
rates or provision of income from other sources, or both."
<http://www.ssa.gov/history/reports/trust/trustreports.html>



--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu