(SeaPRwire) –
By: Oliver Hawthorne, a Principal Correspondent permanently stationed at an international technology review
Social Security faces a 22% cut by 2032 as the trust fund depletes faster than expected. Payroll taxes no longer cover payouts, forcing reliance on incoming revenue alone. The Cassidy-Kaine proposal seeks $1.5 trillion in borrowing to load an investment fund with stocks, aiming for 8.9% nominal returns. They also add $25.1 trillion in borrowing, planning to repay $26.6 trillion total through fund gains.
Boston College simulations expose the flaw, showing success only 36% of the time even at 6.5% returns. Lower assumptions, like 4% real returns, push failure to 83%. Debt overload could depress markets and interest rates, compounding the risk.
The same analysis suggests a safer path: using tax hikes or benefit cuts to secure the trust fund, then allocating 40% to stocks. This mix keeps solvency without steep future pain. Cruz’s Trump accounts echo Clinton-era ideas, shifting payrolls into personal vehicles while leaving retirees exposed.
Such privatization transfers risk to workers and markets, offering false promises amid fiscal reality.
Author bio: Oliver Hawthorne, a Principal Correspondent permanently stationed at an international technology review
