So the government, suddenly saddled with a lot more retirees than they’re used to, makes this same discovery – but it’s even worse. Unlike business owners, the government never even put any money aside. The more people will call and say, these are the promises you made and want to collect on this. The more money our government has to either print or tax to get. This is an age demographic issue. Make no mistake about it, our population is aging.
Back in the 1950s there were 16 workers for everyone Social Security recipient. That allowed us to spread the responsibility to a wide number of workers so they didn’t really fill the pitch. The government could fulfill its promises. Today our population is aging and we are inching toward a 3 to 1 ratio. That means we’ve only got three workers for everyone Social Security recipient. So the workers feel the pinch a heck of a lot more, but so far the government can still carry out promises.
How long will the government be able to do that? Possibly for another 16 years or so.