Defenders of the Social Security system will do almost anything to cover up the fact that it is going bankrupt. Statistically, there is no place for it to go except bankruptcy.
Of course, the debate over Social Security is economically irrelevant, because the magnitude of the unfunded liabilities of Medicare are so gargantuan that these will bankrupt the federal government long before the Social Security system goes belly-up. I mention this to remind you that the defenders of the Social Security system are always also defenders of the Medicare system. They are peas in the same pod.
Because of the inevitable default of Medicare, due to the present value of its unfunded liabilities, which is in the range of $200 trillion, I really do not pay a great deal of attention to Social Security, since the system is utterly doomed because of the effects of Medicare. Both systems will go belly-up. Both systems will be part of the Great Default. The bankruptcy of both systems will finally expose their lifelong defenders as deceivers, cheats, and incompetents. They are people who have spent their lives defending the idea that the federal government has a moral right and legal obligation to send out someone with a badge and a gun and take your money for the sake of buying votes, but all in the name of charity. As you may suspect, I do not think highly of these people. “You paid for it,” they tell the fleecers and the fleeced. No, they didn’t. And now that this gigantic Ponzi scheme is moving into the inevitable negative returns phase. Its defenders grow more frantic to cover up the economics of the most widely trusted fraud in actuarial history.
Among this group of promoters of political plunder, Alicia Munnell is high on my list. I have followed her career for about 35 years. She is probably the most well-known expert in Social Security who is on the Democrats’ side of the debate. Whenever a mainstream news media reporter wants a few favorable words about the Social Security system, the obvious choice is Professor Munnell.
(For my line-by-line refutation of Dr. Munnell’s fantasies, click the link.)