Social Securityâ??s trustees say the system needs only â??modest changes.â? In fact, the system is desperately broke.
The proof is buried deep in the trusteesâ?? own 2012 report in a complex table, numbered IV.B6. Table IV.B6 is a long-run balance sheet for Social Security. It shows that the systemâ??s $88.9 trillion in liabilities exceed its $68.4 trillion in assets by $20.5 trillion.
The $20.5 trillion fiscal gap separating Social Securityâ??s liabilities and assets â?? its unfunded liability â?? is enormous; it is 1.4 times US gross domestic product and 34 times annual Social Security taxes
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