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FBN’s Lou Dobbs on the factors leading to the rise in Social Security spending.
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Or former president Franklin Roosevelt's -- Social Security in the law on August 14 1935.
At that time we had seven point eight million.
Folks.
Are who were 65 or older in this country 65 plots.
Now only 5% of retired people those days terrorists we're getting pensions 5%.
Now that's that's pretty stuck in 1937.
When the first payments under Social Security were made Social Security -- well with a lot of money.
Social security and 1937.
-- -- One.
Million.
-- Back in the thirties average life expectancy get ready for this a lot of people and just ask yourself what do you think it was in the mid -- they average life expectancy in the United States.
It was sixty.
Year.
Sixty years.
The retirement age under the new program.
65.
-- -- your new respect for politicians that -- where they were thinking back then.
Now the age for collecting full Social Security retirement benefits is still between 65.
Sixty -- The sixty -- And that is -- -- -- of course but even though the average life expectancy now we -- rounded up life expectancy now.
Is seven -- 79 of these are numbers and we have it we had a little.
A little problem here.
And now we got a different kind of problem we -- on the most generous.
If we put her on the most generous of terms.
Plus twelve.
Almost two decades more than in the 1930s.
Now 36 billion people who were retired workers are receiving.
-- secure.
The program is expected to pay out 770.
Billion dollars of benefits this year and it's no wonder the Social Security board of trustees is now warning.
That the programs trust fund would be.
Exhausted by 2033.
But the bad news doesn't really in there nearly half of all American -- 49%.
Of all worked.
-- -- -- -- At all.
And the percentage of workers covered by -- traditional pension plan has been steadily declining over the past quarter century over the past -- five years.
Dropping well in 198062%.
Of private sector workers in America 62%.
Have a pension.
62%.
In apartments.
At a it compares to how many now.
Only 16%.
15%.
Have -- pension defined benefit program.
Pensions have been rapidly replaced of course by 41 -- 66% of workers now have.
Those -- one case by comparison.
Public employee unions have done pretty well.
And public employees in this country.
Pick -- guess how many of them enjoy pension plans as compared to the 15% in the private sector.
Well the answer is or rather impressive.
90%.
90%.
In the public -- meaning they will receive guaranteed income usually health insurance as well until death.
Verdict -- it's pretty clear there were not about the 1% in the -- 9% that the left has been push.
We are in fact becoming the 5050 society if we're not careful.
Vile person writes about that and is cover article.
In Newsweek magazine talking about half of this paying taxes and the other half receiving some form of government benefit.
But I say the -- are now well.
5050.
The country will have a serious debate about big government Social Security Medicare Medicaid.
Bloated.
Pensions and our retirement age the nobody's talking about and the impact.
And the government's role in dealing with the issue of retirement which became.
A responsibility.
For the federal government and an entitlement for Americans.
With the passage of Social Security in 1930 -- But 5050 while it may sound daunting I want to assure you these look to me like the best on this country has had.
In terms of fixing problems in a very long time.
