HOUSE_OVERSIGHT_020911.jpg
1.59 MB
Extraction Summary
0
People
4
Organizations
1
Locations
0
Events
0
Relationships
3
Quotes
Document Information
Type:
Presentation slides / financial analysis report
File Size:
1.59 MB
Summary
The document contains two slides from a KPCB presentation titled 'USA Inc. | Income Statement Drilldown' (pages 139 and 140). The content analyzes US Social Security solvency, arguing that the retirement age should be raised to 72 to match life expectancy increases and projecting permanent negative cash flow for the program starting in 2015. The document bears a 'HOUSE_OVERSIGHT' file stamp, suggesting it was part of a congressional production, though the content itself is strictly macroeconomic analysis.
Organizations (4)
Locations (1)
| Location | Context |
|---|---|
Key Quotes (3)
"If an expense rises by 26% and the ability to pay rises by only 3%, the math doesn’t work."Source
HOUSE_OVERSIGHT_020911.jpg
Quote #1
"Simple math implies that the age for collecting full benefits should rise from 67 to 72"Source
HOUSE_OVERSIGHT_020911.jpg
Quote #2
"2015+ Permanent Negative Cash Flow"Source
HOUSE_OVERSIGHT_020911.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (1,419 characters)
That’s a Math Problem...
• If an expense rises by 26% and the ability to pay rises by only 3%, the math doesn’t work. A computer in a science fiction movie might blurt out, ‘does not compute…does not compute…’
• “Something’s Gotta Give…” as the 2003 film put it.
• A mathematician or economist would say, ‘the expense must go down or the ability to pay must rise to match the expense.’
• Simple math implies that the age for collecting full benefits should rise from 67 to 72, so that expenses more closely match workers’ ability to pay. Under this scenario, while Americans are living 30% longer, the ‘retirement’ age would rise just 7%, still well below the increase in life expectancy since Social Security was created.
• “Something’s Gotta Give…” as the 2003 film put it.
• A mathematician or economist would say, ‘the expense must go down or the ability to pay must rise to match the expense.’
• Simple math implies that the age for collecting full benefits should rise from 67 to 72, so that expenses more closely match workers’ ability to pay. Under this scenario, while Americans are living 30% longer, the ‘retirement’ age would rise just 7%, still well below the increase in life expectancy since Social Security was created.
KP
CB www.kpcb.com
USA Inc. | Income Statement Drilldown 139
CB www.kpcb.com
USA Inc. | Income Statement Drilldown 139
Social Security: Unless The Program Is Restructured, Cash Flow Will Turn Negative by 2015E Owing to Aging Population
Real Social Security Annual Operating Income, 1982 – 2036E
$200
$100
$0
-$100
-$200
-$300
-$400
Annual Social Security Net Cash Flow ($B)
$100
$0
-$100
-$200
-$300
-$400
Annual Social Security Net Cash Flow ($B)
2015+
Permanent
Negative Cash Flow
Permanent
Negative Cash Flow
Projection
1982 1987 1992 1997 2002 2007 2012E 2017E 2022E 2027E 2032E
Note: Data adjusted for inflation in real 2009 dollars. Includes Disability Insurance. Projection by Social Security Administration in 8/10. Source: Social Security Administration.
KP
CB www.kpcb.com
USA Inc. | Income Statement Drilldown 140
KP
CB www.kpcb.com
USA Inc. | Income Statement Drilldown 140
HOUSE_OVERSIGHT_020911
Discussion 0
No comments yet
Be the first to share your thoughts on this epstein document