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View Diary: AARP blasts Alan Simpson (114 comments)

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  •  "budget neutral" is a joke. (0+ / 0-)

    When the government spends or transfers money it's not neutral.

    The SSA currently distributes about $1.3T -- And the "trust fund" surplus offsets the deficit. According to the trustees, real soon now the "trust fund" surplus will begin to decline, which means bigger deficits.

    With no changes, beginning in 5 years, SSA outlays will begin to grow from about 7% of GDP to about 12%. In the next 20 years, according to the midline Census estimate, the number of people 65 and older will grow by 77%, while the people aged 18 to 64 will grow by only 6%. This estimate is based on net international immigration remaining constant. If immigration is reduced, then the 18-64 year old group will grow even less, or actually decline.

    The current system is simply not sustainable. Something has to give. Will 18-64 year olds be willing to accept substantially lower standards of living? Will we be able to eliminate our standing army (i.e., get rid of the armed forces). That's the level of spending we're talking about.

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