Simcivic Update #6

Pay As You Go Solvency
(Faster Growth Scenario)

Two images from our online Social Security Solvency Simulator.

Benefits and Charts 1, side by side.
Note that Overall Benefits are trimmed to 81% of the current law schedule by 2035.
Chart 1B. The Funds-to-Benefits Ratio is level in the out-years. This passes the key test for lasting solvency..
Chart 3A. Benefit sources are adequate to reach the "Benefit Target" line. Note the pink "Trust Fund Earnings" bars.
Somewhat more prominent on the Slow Growth run, they barely appear on this run.
That they do begin to show in the late 2060's indicates that benefit payments from that point forward will be financed
not only by payroll tax receipts, but also by very modest interest payments from the US Treasury.

 

Results Page. You can use the settings on this page to recreate our results for yourself.

Note the cumulative "Benefits Actually Paid" line - $604 Trillion, paid 2003 - 2075.
Note the "(Reference) Cum. GDP" line showing $13,090 Trillion in cumulative GDP. Cum GDP in the slow growth scenario is $7,500 Trillion.

Note the combined employee-employer Tax Rate - it holds steady at 12.4% of taxable payroll.
Note the GDP Growth Rate assumption.
GDP real growth is pegged at 2.6% a year, signifying productivity growth one percentage point higher than in the Trustees' forecast.

A series of PRA assumptions also show up on the Results Page. As no PRA's are authorized, they have no bearing on this run.

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