Only after effectively minimizing its costs, should taxes and insurance premiums be raised to keep the system solvent.
FORBES: Deadline Met? Sort Of. Goal achieved? Sadly, No. Crisis Averted? Still Too Early to Say.
Social Security's actuaries assert that a two-percentage-point increase in payroll taxes would render the system solvent for another 75 years.
As a result, say the Democratic boffins, Social Security benefits would have to be cut by 54% for those 30 or younger in 2002 to keep the system solvent.
ECONOMIST: Social Security reform: The battle of the boffins | The
The Democratic economists do not allow the trust fund to go into the red at all, implying that their analysis demands bigger cuts in benefits to ensure that the system stays solvent.
ECONOMIST: Social Security reform: The battle of the boffins | The
The result would be that the banking system would be solvent again.
FORBES: The Wrong Way To Restructure Europe's Myriad Insolvent Banks
According to a report from the Social Security and Medicare Board of Trustees, the Social Security system is expected to be solvent until about 2037 -- largely because of the surplus in the Trust Fund -- even though the payroll taxes flowing in stop being enough to cover the expenses flowing out in 2017.
America recently imposed sanctions on the main Hamas-owned bank, but the informal hawala banking system that straddles the border keeps the strip solvent.
But fixing the system requires us understanding that if banks are not solvent, if they are not lending, then businesses are not going to be able to invest, we are not going to be able to create jobs.
We learn that water is an immensely powerful solvent, which in turn makes it work wonderfully as a transport system for the body.
As I have pointed out before, where a national central bank presides over one national banking system, you can draw a distinction between propping up solvent - but illiquid - banks - and propping up governments.
Under euro-system rules, national central banks can only provide ELA to solvent banks against collateral.
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