1. Social Security's Financial Outlook and Reforms: An Independent Evaluation
- Author:
- Jagadeesh Gokhale
- Publication Date:
- 10-2011
- Content Type:
- Working Paper
- Institution:
- The Cato Institute
- Abstract:
- Social Security is often described as a "foundational" element of the nation's social safety net. Almost all Americans are directly affected by the program and many millions primarily depend on its benefits for supporting themselves during retirement. But the program's financial condition has worsened considerably since the last recession, which began in 2007. In that year, the Social Security trustees estimated that the program's trust fund would be exhausted by 2042. The trustees' annual report for 2011 brings the trust fund exhaustion date forward to 2038. Indeed, the programs revenues fell short of its benefit expenditures in 2010 and it appears unlikely that significant surpluses will emerge again under the program's current rules. If the program's finances continue to worsen at this rate, it won't be long before the debate on reforming the program assumes an urgency and intensity similar to that during 1982-83, when imminent insolvency forced lawmakers to implement payroll tax increases and scale back its benefits.
- Topic:
- Economics, Government, and Human Welfare
- Political Geography:
- America and Ethiopia