Saturday, July 22, 2017

COMPANIES EMPLOYING COGNITIVE/IA AUTOMATION WILL BE REQUIRED TO PAY INTO THE SOCIAL SECURITY SYSTEM

Social Security Will Be Paying Out More Than It Receives In Just Five Years. WHY? ... HOWEVER, all is not lost yet!

TIME TO SAY GOOD BYE TO OLD THINKING!
LISTENING TO CONGRESS DEBATE HAS REACH THIS LEVEL
When social security was first implemented in the 1930’s, America was a very different country. Especially in regards to demographics. The average life expectancy was roughly 18 years younger than it is now, and birth rates were a bit higher than they are now. By the 1950’s, the fertility rate was twice as high as it is in the 21st century.
In other words, for the first few decades, social security seemed very sustainable. Most people would only live long enough to benefit from it for a few years, and there was an abundance of young workers who could pay into the system.
DISPLACEMENT CONTRIBUTIONS TO SOCIAL SECURITY BASED ON A "NUMBER OR RATIO, SOME SORT OF METRIC" OF DISPLACED PERSON WORKERS (DPW) ... WHAT! YOU THINK ITS CRAZY ... WAIT!

CONNECT TO GDP ... IMPORTS ... TRADE ... WHO PAYS?



Those days are long gone. As birth rates plummet and people live longer, (which otherwise should be considered a positive development) social security’s future is looking more and more bleak.

No matter how you slice it, it doesn’t seem possible to keep social security funded. In fact, social security is going to start paying out more money than it receives in just a few short years. It may even be insolvent before the baby boomer generation dies off.

According to the Social Security Board of Trustees, the Old-Age and Survivors Insurance, and Disability Insurance (OASDI) Trust Funds will be depleted in 2034. 

When this happens, only 77 percent of benefits will be payable. That estimate is no change from last year’s estimate.

In addition, the Disability Insurance trust fund will be depleted in 2028, which is an improvement from last year’s estimate of 2023. Once that fund is depleted, 93 percent of benefits will be paid.

Right now, Social Security continues to take in through revenue more than it pays it through benefits, which is expected to continue until 2022. Once Social Security begins to pay out more than it takes in, it will be forced to liquidate the assets held by the trust funds.

In 2016, Social Security generated $957 billion in income. It only paid out $922 billion including $911 billion in benefits to 61 million beneficiaries.

But the solutions that have been proposed for this problem don’t hold much promise. For instance, we know that simply raising taxes won’t work.

Encouraging automation is a positive goal ... the more automation the more displaced persons' contributions to social security. The automation jobs require higher levels of education ... IBM Watson ...


Cognitive automation: Efficiency at the speed of thought

A century ago Ford automated the manufacturing process. Since then automation has been used to build anything that requires repetitive manual tasks. Automating these mechanical process allows people to concentrate on more complex and creative tasks that machines can’t handle. Many of today’s organizations seek innovative options that streamline tasks and increase efficiency across the business, in all departments. Technologies like cognitive automation and AI are creating new efficiencies and improving quality. By implementing robotic or cognitive automation, human tasks and judgment can be replicated at rapid speeds and considerable scale.
With ongoing growth in data, scale, and available technologies, businesses are turning to robotic or cognitive automation to help improve quality, scale, and speed of processes, leading to a more robust bottom line. Learn how one financial services organization used cognitive automation to increase profitability and reduce risk–then applied the solution to other areas of the business for exponential value.
Watch how organizations in financial services and healthcare can use cognitive automation to increase profitability and reduce risks. Cognitive automation is at the forefront of innovation that began over a century ago and it leads a new wave of technology to address the future.
But increasing the payroll tax is not a good long-term solution to fixing Social Security. For example, a higher payroll tax would have negative economic effects. In addition, it’s not even clear that raising the payroll tax would even generate enough revenue.

“Some claim that the solution to preserving Social Security is to raise more taxes, but history shows that doesn’t work,” said David Barnes who is the director of policy engagement for Generation Opportunity in a statement to the Washington Free Beacon. “In fact, since Social Security was created, payroll taxes have been raised more than 20 times. Twenty times! Yet, the program is still headed towards insolvency.”

This is one reason why so many Western countries, almost all of which are suffering from declining birth rates, have been so eager to open their borders to more immigrants. They’re trying to bring in as many young workers as they can.

But that’s not going to work either. Forget about the high crime rates, terrorist attacks, and social disintegration that Europe is facing now after bringing in millions of immigrants. Even if those problems didn’t exist, immigration isn’t the solution. The West has had wide open borders for decades, and it hasn’t made a dent in the liabilities faced by social security programs (perhaps these immigrants aren’t paying as many taxes as these governments had hoped).

We could let younger generations opt out of social security to stave off future obligations, but that wouldn’t help fund the current generation of retirees. Social security is already on the path to being underfunded for them, and letting young people opt out would obviously make things worst for current retirees.

THINKING OUT OF THE BOX
There isn’t really any viable solution for paying off the future liabilities of social security, aside from cutting the benefits or increasing the retirement age. Otherwise, it’s going to run out of money eventually, which is the same story with private and public pensions. We are all paying for our retirements in one form or another, but few of us living right now are going to fully benefit from it.