FRB: Testimony, Greenspan --Future of the Social Security program and economics of retirement -- March 15, 2005: "The necessary adjustments will become ever more difficult and larger the longer we delay. No changes will be easy. All programs in our budget exist because a majority of the Congress and the President considered them of value to our society. Adjustments will thus involve making tradeoffs among valued alternatives. The Congress must choose which alternatives are the most valued in the context of limited resources. In doing so, you will need to consider not only the distributional effects of policy changes but also the broader economic effects on labor supply, retirement behavior, and national saving. The benefits to taking sound, timely action could extend many decades into the future."
Social Security Taxes may need to increase from the present 12.4 percent to 18 percent by mid-century. Individual savings must also rise. Truly sobering projections.
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