The validity of the public debt of the United States, authorized by law,Lately however, people have been calling them "useless ious". This is not so. The United States has never defaulted on its debt. And these bonds carry the same weight as any other bonds the government issues.
including debts incurred for payment of pensions and bounties for services in
suppressing insurrection or rebellion, shall not be questioned
People have been talking alot about the fiscal crisis that faces social security but it depends on a set of assumptions all worst case scenarios. One of which is that over the period we are talking about the economy will only grow at 1.8% per year about half what we have averaged the last 75 years. If that happens the stock market will surely tank.
Now lets talk about the dates... remember this is a worst case scenario if we make no change.
- 2042/52 this is the year that the Trust fund runs out of money but Social Security will still be able to pay 80% of promised benifits
- 2018 this is the year that Social Security will be taking in less than it pays out.
Next time more on the President's non-plan its origins and the morality or lack for such a system.