Social Security Is Running Permanent Deficits

Try not to act too surprised.  It looks like Harry Reid was wrong about Social Security!

The Congressional Budget Office has released new projections that shows Social Security’s fiscal situation is much worse than previously thought.    As a matter of fact, the CBO has stated that it will be running deficits every year from now until it is completely drained in 2037.

Social Security’s finances are getting worse as the economy struggles to recover and millions of baby boomers stand at the brink of retirement.

New congressional projections show Social Security running deficits every year until its trust funds are eventually drained in about 2037…

The massive retirement program has been feeling the effects of a struggling economy for several years. The program first went into deficit last year, but the CBO said at the time that Social Security would post surpluses for a few more years before permanently slipping into deficits in 2016.

Someone should pass this news along to Harry Reid because it was only three weeks ago when he confidently made the claim that Social Security is fully funded for then next 40 years:

He misinformed the public about Social Security’s solvency again over the summer, claiming that it is the “most successful social program in the world.”


Random thought:  If Social Security is going broke, but it is considered the “most successful program in the world” by Harry Reid what does he consider the worst social program in the world?

Republican Senator Rand Paul has an answer for the Social Security problem:

Paul said Thursday that he will introduce another bill “in the next two or three weeks” that would address the Social Security entitlement program by raising the age of eligibility for younger workers and use “means testing” to determine if a citizen with high income is eligible to receive benefits.

“We are going to propose separate legislation sometime in the next two to three weeks that will gradually raise the age,” Paul said. “The debt commission waits until the year 2050 to begin raising the age. We’re going to do it much quicker, although we have promised near retirees not to do it to them so we are going to try and have a little bit of delay, but then we’re going to try raising the age.”

The announcement comes just days after Paul released a plan to cut $500 billion from the federal budget, dismantle most of the Department of Education and completely eliminate Departments of Energy and Housing and Urban Development. Social Security and Medicare were noticeably absent from the proposal.

You know what they say about taking on sacred cows like Social Security.  It tends to be a career killer for politicians.  However, I think if there ever was a time when Americans were open to making serious changes to government operates, including welfare benefits, the time is now.  The only other alternative is waiting for the checks to bounce. If that happens thinkGreece.