The following analysis of the debt to our Social Security Fund is an estimate, but if I dare say, it’s very close to reality.
In order to calculate future earnings, investors use The Rule of 72, which divides the number 72 by an investment’s expected annual return. The result is the number of years it will take, roughly, to double your money… At 10% interest, you could double your investment every seven years. ( 72 divided by 10) Investopedia.
In order to calculate the debt and interest we are owed correctly we must make use of compounded interest, where you add the interest earned every year to the principal amount due and the subsequent years the principal increased against the fixed interest. ie $100,000 principal @ 10 annual percent interest =$110,000 total principal and interest for the first year. The second year would look like $110,000 principal @ 10% annual interest = $121,000. This is how interest against principal investment is compounded.
Since this debt to our Social Security Fund deals with trillions of dollars and a forty year time frame its easier and close enough to use the The Rule of 72 instead of the compounded interest formula, which requires specialized equipment. So here we go.
Lender Principal owed Time Interest % Interest owed $ Total Debt
Reagan $2,7 Trillion 40 years 3% $4.9 Trillion $7.67 Trillion
Bush $1.3 Trillion 20 years 3% $1.079 Trillion $2.4 Trillion
Gran total of debt to the Social Security Fund: $10 Trillion dollars or $10,000,000,000,000.
Since sums in the trillions of dollars has very little meaning to us, look at this debt in the following way. If an individual nets $100,000 income per year it would take him/her one hundred million years to consume ten trillion dollars. This debt is real and appears to be uncollectable. The arrogance and corruption of politicians and yes, our government. Ugly business.
As we can see Republicans have been doing the stealing. Why haven’t the Democrats done anything to recover these monies? They, Republicans and Democrats alike are in the same boat. We are on the outside looking in. When is enough enough?
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