How does the Social Security crisis work?
There isn’t any money because the vast majority of the total Federal Debt is actually “Intra-Governmental Debt”, which means that the trusts that had been built up by the baby-boomers (e.g., Social Security) has been “borrowed” from in order to fund deficit spending. The problem occurs in the future because there are so many more baby boomers than there are, well, us (young folk anyways), and, moreover, those baby boomes are all going to start retiring within the next 20 years or so. As more and more baby-boomes retire, they’ll draw more and more from a Pension fund that takes in less and less funding from the population. The Federal Government will have to borrow more money in order to finance this. It won’t be able to borrow from these “Intra-Governmental” sources as heavily anymore (if at all), and so more and more of the debt will be transferred to other countries, citizens, corporations, banks, and so on. This is actually starting to happen right now. If you look at the % of Total
