Social Security is BANKRUPT—Here’s What Happens Next (Uncut) 03-04-2025

what if I told you that Social Security might be the biggest financial disaster in America a program that every American worker is forced to pay into and yet somehow there are people as old as 300 still collecting benefits we’re talking about a program every American worker pays into and yet no one really knows if the money is actually there Social Security is is the biggest pzi scheme of all time and in just a couple years from now experts believe Social Security will go broke Social Security is in trouble

the program is quickly running out of cash Millennials and younger don’t believe that they’re going to a penny of Social Security but did you also know there are more Social Security numbers in existence than there are actual living people the government can’t even track how many people are still getting checks that shouldn’t be and some of the fraud might be costing the tax pays billions of dollars in fact recent discoveries show that the social security system still has people collecting benefits who are supposedly

over several hundred years old which is impossible because there’s only a handful of people on Earth who live past 110 so either we’ve got the world’s first vampires or something really sketchy is going on so if the government can’t even keep track of who shouldn’t be collecting Social Security how do we trust them to manage the over one trillion dollar a year that goes into the system somehow some of these old Social Security numbers are still in use and here’s the real kicker Social Security is projected to be fully

insolvent within the next decade that means unless something changes benefits will automatically be cut by 20 to 25% across the board so imagine retiring and suddenly losing a quarter of your income overnight that raises the question who’s cashing these checks how did it get this bad and will Social Security be around much longer I want to help explain Social Security’s biggest scandals why it’s running out of money whether it’s secretly a Ponzi scheme and most importantly what’s about to happen next

so with that said let’s get into it hi my name is Andre J hope you’re doing well come for the finance and stay for Social Security Now Social Security is something we’ve all heard of we all pay into it with taxes but most of us don’t know how it actually works in theory it’s supposed to be a system that makes sure that every American has Financial Security when they retire but in reality it’s a system that was never designed to last this long before we talk about how bad things are today we need to

understand how we got here in the first place because the origins of Social Security tell us a lot about why this system was doomed from the beginning back in 1935 the United States was deep in the Great Depression the stock market had crashed Banks were failing and unemployment was at a massive 25% one out of every four Americans were out of work families lost their homes savings were wiped out and elderly poverty was skyrocketing back then if you couldn’t work you were on your own there was no government safety net if

your family didn’t take care of you you had no income no health care and no retirement plan so a lot of elderly Americans were forced to beg on the streets or rely on charity just to get by so the president at the time Franklin Roosevelt introduced the Social Security Act a program designed to collect a small tax from workers and then pay out benefits to retirees when they turned a certain age now this was a revolutionary idea at the time before Social Security retirement plans were really rare only

5% of workers had pensions most people worked until they physically couldn’t anymore and then they relied on their children or charity to survive when Social Security was created the goal was to pay just enough to keep seniors out of poverty but here’s where things get really interesting when Social Security was first created the average life expectancy in America was just 63 years old and the retirement age was set to 65 that means most people weren’t even expected to live long enough to start

collecting benefits in fact when Social Security started only 54% of men and 60% of women even made it to age 65 this means almost half of all workers paid into a system without ever seeing a single check and this was by Design the system worked because the government knew that most workers wouldn’t live long enough to collect and if they did they wouldn’t collect for long because in 1940 if you did make it to 65 the average person only lived another 12 years compare that to today where if you made it to 65 you’re expected to live

another 20 years or more that means Social Security is paying benefits for twice as long as what was originally designed and in 1940 everything changed one person beat the Social Security System the first person to ever collect a social security check was Ida May Fuller she was a legal secretary from Vermont and just like millions of Americans she started paying into Social Security when it first launched in 1937 but here’s the crazy part she only worked for 3 years before retiring in 1940 and in those three years she

contributed a grand total of just $225 in payroll taxes her first ever social security check was a whopping $22 54 the exact amount she had paid in and that was just the beginning Ida lived to be 100 years old and collected social security for 35 years and over the lifetime of her retirement she collected a grand total of $ 22,88200 times what she put into the system she was the first but she wasn’t the only one in fact almost everyone in that first generation of retirees made out like Bandits so the question is what

happens when the math stops working what happens when there’s not enough retirees collecting out that’s exactly what started happening when Social Security started in 1935 it worked because there were more workers paying into the system than retirees collecting out in 1935 there were 42 workers for every one retired person but by 1960 that number dropped to just five workers per retiree and that’s not the only thing that contributed to the downfall of Social Security Social Security operated strictly within its own finances and

that extra money should have been saved and invested for future retirees but instead the government just spent our money Congress used it to pay for other government programs replacing the money with IUS called the Social Security trust fund so how did we let that happen in 1968 the government did something that would change Social Security forever and not in a good way president Lyndon B Johnson made a decision that would allow Social Security’s extra money to be spent on whatever Congress wanted it was called the unified budget

all of a sudden Social Security’s money was being counted as government revenue and just like that it became super easy for politicians to raid the piggy bank this made it so that on paper Social Security’s surpluses were now counted as Government income or Revenue why he did that was to make Federal deficits AKA government overspending look smaller than it actually was at the time the US was spending a lot of money on the Vietnam War and programs like Medicare and Medicaid and by Rolling Social

Security’s extra funds into the general budget Johnson’s Administration was able to hide the true cost of government spending for example in 1969 the reported Federal deficit was only $3.2 billion but without Social Security’s Surplus being counted as Revenue the real deficit would have been closer to $25 billion now at first this seemed harmless because Social Security was still running at a surplus it was making more than it was paying out but it was that decision that set the stage for decades of mismanagement waste and fraud

it made it easier for future politicians to tap into Social Security’s excess money for other government programs Congress borrowed our money to cover deficits and fund programs like military expansion infrastructure projects and Welfare programs by 1999 Social Security surpluses were making up over 30% of the balance budget under Bill Clinton but in reality it was just masking the real Federal deficit then fast forward to after 911 President George W bush passed major tax cuts reducing government

revenue by over 1.35 trillion over 10 years so to help offset the newly spent money the federal government borrowed even more from the Social Security trust fund using that money to finance both the tax cuts and increase military spending in Iraq and Afghanistan by the time bush left office in 2008 1.7 trillion of Social Security surplus funds had been spent and then the 2008 financial crisis happened bank bailouts and tarp put even more pressure on Social Security but the bailouts themselves were not pulled from Social Security

it’s just that bailing them out meant that the government had to borrow even more money lowering its ability to pay back what it already owed to Social Security and in 2020 the government spent even more trillions on stimulus programs like the cares act and expanded unemployment benefits to prevent the economy from collapsing the federal government took on huge deficits which put even more strain on its ability to pay back Social Security’s IOU and that brings us to today in early 2025 the do subcommittee held its first

hearing and uncovered billions lost to fraud and improper payments the Social Security Inspector General reported that from 2015 to 2022 about 71.8 billion was improperly paid out that’s almost a billion dollars a month in mistaken or fraudulent payments the Social Security Administration even admitted most of those were overpayments to people who were eligible meaning the government just messed up and paid too much and recently Elon claimed he found crazy things in Social Security like people over 150 years old still on the

payroll C re examination of Social Security and we got people in there that are 150 years old now some people say no no no this is just Elon Musk who misread the data because Social Security keeps a database of every number ever issued including people born in the 1800s who obviously passed away a long time ago but lacked that status in the system those records exist but that doesn’t mean they’re getting paid and that might be true but that doesn’t explain all the fraud that is still there the Doge task

force for example claims that there are more Social Security numbers in existence than there are living workers how is that even possible the Social Security Administration has issued over 450 million Social Security numbers since the program started but here’s the problem there’s only about 165 million active workers in the US today so where did the rest of those numbers come from now some of that are due to old numbers that belong to deceased people but that doesn’t explain all of them there have

even been cases where Social Security numbers were being used by multiple people at at the same time either through fraud or simple government error and this has led to theories that millions of phantom people are still on the books and receiving benefits costing taxpayers billions of dollars now some of the press denies these allegations and says no this is just data that Elon misunderstood they’re blowing it up to be worse than actual reality but the Social Security Administration itself admitted that over 6 million social

Security numbers are still active for people over 112 years old which would be impossible because there’s only a handful of people alive on Earth who are that old some of those numbers might be errors in the system but a lot of those numbers are being actively used in fraudulent claims that means deceased people right now might actually be collecting Social Security either through identity theft government incompetence or maybe something worse a 2015 AUD it found that thousands of people were receiving benefits under

multiple numbers at the same time in one case someone managed to get two full sets of Social Security benefits by using a second number another report found that the social security administration had issued the same number to multiple people creating massive identity conflicts so the question is if the government can’t track who’s alive and who should be collecting our tax dollars how do we trust that so Social Security is being properly managed and this is exactly why people demand more transparency from the

government and yet despite the repeated calls for Audits and investigations we’re still left with more questions than answers now one of the biggest lessons I’ve personally learned is that I’m not going to wait for the government did you know for example that 25% of all retirement assets are lost or forgotten that’s billions of dollars just sitting there unclaimed and if you’ve ever switched jobs there’s a good chance you have an old 401k floating around somewhere the problem is most people don’t know how to roll it over or even

where to start it can be complicated time consuming and kind of annoying that’s where capitalize comes in capitalize is a completely free coner service that helps you find and transfer your old retirement accounts into an IRA of your choice they handle everything for you no endless calls with HR no confusing paperwork just a smooth hassle-free rollover and the best part is that you stay in control of your Investments while capitalized does the work for you I’ve had friends who lost track of old 401ks after changing jobs

and the process of getting that money back was a nightmare until they found capitalize so if you’ve ever changed jobs and you’re not sure where your old retirement savings went don’t let that money go to waste click the link in the description down below and let capitalize help you thank you capitalize for supporting the channel and now let’s get back to it the billion- dooll question is what can the government do there’s really only three choices and none of them are really that good first they could raise payroll taxes and that

means you and I pay more out of our paychecks no one likes that second they could cut benefits that means retirees get less money every month even if they paid in for decades that doesn’t sound good either third they could raise the retirement age again meaning we’d all have to work longer before we’re allowed to collect see the problem no one wants to take responsibility for fixing this so the short answer to what they’re doing about this is not enough enough and the solutions that have been proposed so far are kind of lame some

say we should tax the rich more to make up the shortfall because right now incomes above $160,000 a year aren’t taxed for Social Security some proposes suggest lifting that cap so higher earners pay more other people want to raise the retirement age to 68 or 69 and since people are living longer another idea is means testing benefit meaning wealthy retirees would get less or no social security to preserve it for those who actually need it and some politicians have floated privatization allowing workers to invest part of their

social security taxes into the stock market for potentially higher returns and out of all the proposals this one is the best our retirement dollars are already being gambled by the government so it might as well be taxpayers who get the benefit of gambling our own money in the stock market that way we have a chance but critics argue that’s really risky especially if there’s a market crash right before someone retires so no matter what change is going to have to happen whether people like it or not because if

nothing’s done Social Security will automatically cut benefits across the board by about 20 to 25% in 2033 so if your grandma gets paid $22,000 a month now she’d be looking at $15 to $1,600 a month instead that that’s a massive cut and for millions of seniors it could mean the difference between making ends meet and struggling that’s the reality now Social Security isn’t some secret Ponzi scheme it kind of was in the beginning because the earliest people got to profit the most out of it but it is a System created by the old world

that doesn’t work for the new one the fact that there are millions of extra Social Security numbers floating around that Phantom people might still be getting benefits from means that the government is incompetent at best or is using our money to fund fraud and waste at worst so the real question is if there’s nothing to hide then why not conduct a full public audit of Social Security why not verify exactly where the money is going and fix the errors that cost taxpayers billions until we get real answers we’ll never know but

what do you think do you think Social Security will survive or are we watching the end of it in slow motion and if you were in char charge what would you do would you raise payroll taxes cut benefits or raise the retirement age or do you think there’s a better way oh and one last question should we audit Social Security the same way we should audit Fort Knox I think we should let me know what you think in the comments I read all of them I hope you have a wonderful rest of your day smash the like button

subscribe if you haven’t already I’d love to see you back here next week I’ll see you soon bye-bye