Social Security continues 40-year march toward insolvency

For the last four decades, there has been chatter of social security falling apart, and that any day, the program will be entirely insolvent. That clock continues to tick, but it has gotten louder in recent years.

The most recent Congressional budget office report says that the year 2033 will begin presenting financial difficulties. That is just a short nine years away, and we still sit with little resolution to the problem. But what is the main problem?

Economist Vance Ginn says it begins with simple economics.

"By the year 2033, it is set to be paying out more money than it is bringing in, which could lead to benefits being cut by 23 percent," he says. "You have more people receiving social security, compared to people coming in new and working...you have an accounting problem."

On the line right now is about $22 trillion in promises made by the program it will likely be unable to fulfill.

Yet, here we sit, staring down the barrel of a major issue less than a decade away, and Congress barely mentions the problem. You may hear politicians preach about it in stump speeches to gain office, but there have been no real solutions presented. It is not all their fault, though, as Americans remain in the dark on it as well.

"This is the problem...Congress always waits until a crisis happens to make major changes," he says. "Until that happens, Congress will not want to act because voters are not pushing for it. I hope that we can see some action."

Hoping for action though means relying on Washington to do something quickly. However, we all know that the words 'quick' and 'Washington' are never used in the same sentence. Unless separated by the word 'not.'

"If they wait until the very end...in 2033, or 2034, this will blow up in their face," he says. "They will have voter pushback, and revolt, people will be unhappy. That is why they need to take control of this now."

As far as the action needed, what is the fix? It begins with some harsh realities.

"There may need to be looked at raising the retirement age," he says.

But rest assured, raising taxes is not a viable solution.

"If you raise taxes, you will slow down economic growth, and therefore, those that are paying into the program," says Ginn.

But until a slow Washington is willing to do something, the clock continues ticking toward social security doomsday.