Social Security or Government Ponzi Scheme

From CNN:

"On the one hand, assets in 401(k) accounts -- which are predominantly in stocks -- have declined in value by about a third, employers are suspending matching contributions, and millions of unemployed workers have seen their retirement savings efforts disrupted.

On the other hand, the Social Security Administration continues to send out monthly checks to 35 million retirees and their spouses, 9 million disabled workers and their families, and 6 million families whose breadwinner has died. In other words, the government system has proved to be much less fragile than the private system of retirement savings."

Less Fragile?  Just because they're still cutting checks?  Later on in the article, perhaps beyond where most people would bother reading they point out that the financial crisis reduced the year that Social Security was expected to run out of money by 4 years (i.e. 2037).  Considering the horizon, 4 years is 12.5% decrease in their estimates.  

And the scary thing is that their decrease didn't come from the stock market dropping like it did for 401k's, it came from payroll payments decreasing due to massive unemployment.  The people working today are paying the social security tomorrow, literally, not figuratively.  In 2037 the payroll today will pay for the social security today, and that's when events like the depression will be all the more depressing.  Right now based on government estimates the payroll in the future will cover 75% of the benefits in the future, so since they don't have any more money, people get 75% of what actuaries said they should have gotten.  If there's massive unemployment like there is now, that means that they can't just cut the future estimate back 4 years, they have to cut the current payments.  How much harder is it going to be when people relying on social security already have a diminished amount and then have to face an immediate cutback because economic times are tough.  Talk about bread lines!

So CNN writer, no, Social Security is not faring better than 401k's.  At least I know what I have in my 401k, know where it is, and if I want to invest it all in cash I'll know what it's worth.  Social Security is a total craps shoot past 2037 (or sooner.)