Question by Ryan Jansen: Can you answer a political question about bankruptcy?
Im a college student trying to understand politics. When someone says social security or any welfare program is going/gone “bankrupt” what does that mean? Being that its funded by taxes i cant see how it can go bankrupt or at least the same way bussinesses do. Dont be afraid to explain in detail if neccessary. Thanks yahoo chaters!
Answer by Rick B
That means that more money will be coming out than going in and the system will collapse. It is funded by taxes, but when you have more retired people taking money out and fewer employees paying the taxes in, something has to give.
Social Security was designed to be a security blanket for the very old. When it was created MOST people did not live long enough to collect. Now, everyone seems to think they are entitled to it and the vast majority of people live long enough to collect for many many years.
Give your answer to this question below!