Monday, January 7, 2013

Demography Is Bankruptcy

In their January 5, 2013, article, "Social Security:  It's Worse Than You Think," in the Sunday New York Times, Gary King and Samir Soneji predict, among other things, that Social Security will run out of money in 2031, three years prior to the federal government's estimate.  Furthermore, King and Soneji point out how inaccurate many of the financial models relied upon by the Social Security Administration really are.  Here, and in more depth in their article, "Statistical Security for Social Security," published in the August 2012 issue of the journal Demography, the authors raise numerous alarms about how wobbly the mathematics are that undergird the future financial well-being of millions of Americans.  If demography is destiny, the mathematics of Social Security suggests that the Baby Boomers may become the Skint Seniors.