Talking about OBA – Economic Research



OBA – Economic Research
Surprise! Swamped by a 23 percent increase in benefit applications fueled by a surge in early retirements (age 62-65), higher disability payment requests and declining payroll withholdings resulting from generationally high unemployment and underemployment, Social Security Administration officials for the first time in the OASDI program’s history now expect to pay out more in benefits the next two fiscal years than are received in contributions.Since all previous annual Social Security surpluses have been lent to the federal government to partially fund national budget deficits, including $142 billion in FY2009 (which for a generation have masked the true extent of our profligate deficit spending), OASDI (Old Age, Survivors and Disability Insurance) has about $2.5 trillion of government bonds in which those surpluses have been "invested" and from which it can fund the $10 billion shortfalls it now projects for the next two fiscal years, and any other deficit years, by redeeming those bonds from the federal government.

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