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Why Not Pay a Billion Percent Interest Then?

Posted by Jeff Dircksen - February 04, 2005

From's daily newsletter:

CBO's estimates are more optimistic than those put out by the Social Security Administration's Chief Actuary, who has said that revenues will exceed outlays in 2018 and the trust fund will be exhausted in 2042. The ten year discrepancy between the two estimates of trust fund exaustion comes largely from different assumptions about the long-term averages for interest rates. CBO uses slightly higher interest rates in its economic models for the next fifty years, meaning that more money is credited to the Social Security trust fund from bond repayment. Those extra funds would prolong the program's life expectancy. [Emphasis added]

Just so we're clear, under CBO's assumptions, the goverment promises to pay itself more interest than previously thought and suddenly Social Security is more solvent. Makes sense to me.

Is it too late to take what I've already paid into the system and head to the roulette tables in Vegas?

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