(AP Photo/Bradley C. Bower/File)
Forecasts that the Social Security system will for the first time since the 1980's pay out more then it receives will no doubt send Republican leaders sprinting for the nearest microphone in an effort to hoist blame upon the President's shoulders. But with less then a year in office under his belt is President Obama really to blame for a system broken and left un-fixed long before he took the oath of office?
Indeed, the Social Security question has hung not merely unanswered, but ungrappled with for years. With President Bush's attempts to privatize the system serving as the last major stab at reform, a "solution" thankfully not adopted in light of last years decimated stock market.
The down economy is in fact the main culprit behind the Social Security deficit, with applications for retirement benefits jumping an estimated 23% and the applications for disability increasing 20% over the last year, the Associated Press reports. The increase in those seeking benefits though is not solely too blame, with increased unemployment leading to decreased Social Security tax revenue, creating a perfect storm of budgetary red ink.
The AP went on to report that while the system will add an estimated $19 billion dollars to the Federal deficit over the next two years it will not face insolvency thanks to years of accumulated surplus earmarked for the payout of benefits.
Also mentioned in the AP report were Congressional Budget Office figures that show a return to positive growth in the system from 2012-2015 before slipping back to deficits in 2016 and thereafter unless Congress and the President reach out to reform a broken Social Security system left unfixed by previous politicians unwilling to grab hold of one of the more controversial and complex issues of our time.
It seems clear that while any proposed solution will be universally panned and despised by approximately 50% of the country, the need exists for bravery, foresight, and action on this issue and not commissions, ignored recommendations, and aborted stabs at reform. The clock is ticking, the deficit is growing.
Comments
Soc Sec could be saved ... and remain solvent ... if monthly checks stopped going out to NON-working spouses who automatically get 1/2 of their working spouse's benefit. If someone did NOT work; did NOT pay into Soc Sec; & NO employers paid in their share to Soc Sec. ... then WHY are these NON-working spouses getting checks?? It's like Madoff's ponzi scheme ... the players took out more money than they put in; and they USED MONEY THAT WAS PUT IN BY OTHERS!
We have Democrats to thank for the two greatest boondoggles that will bring this country down: social security and medicare. Now the Dems want to put another nail in the coffin; government run healthcare.
Hey Jason, you write: "the need exists for bravery, foresight, and action on this issue" but I bet you were one of the biggest BITCHERS when GW Bush tried to fix the problem just a few years ago and was lambasted, blamed, and demonized by the morons on the left and the Democrats who never saw someone elses dollar they didn't want to give away for a vote.
Jennifer, I did not and do not support the idea that social security funds should be freely wagered on a volatile stock market. I think the recent economic downturn which devoured the private retirement savings of millions of Americans stands as a prime example as to why social security and private investment do not mix.
Mary, are you advocating an end to social security and medicare?
re: dmereh,s comments, i used your very same argument in my divorce proceedings. reg: s.s.funds running out. i noticed that our gvt. representives who watch our for us, have set up their own retirement program separate from our s.s. program. makes me wonder why? heck they probably have their funds in something silly like gold bullion
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