United We Stand, Divided We Fall

In a recent opinion piece in the Columbus Dispatch, Robert J Samuelson hits the nail on the head as he opines about Social Security Retirement. In his “Social Security Can’t be Off Limits”, he notes that in 2012, 23% of the budget went to Social Security Retirement. This line item will increase dramatically as baby boomers retire. He noted that ‘in 2010, there were 40 million Americans 65 and older. By 2020, that number is projected to be 55 million; by 2030, 72 million.’ That is an 80% increase in just 17 years. Social Security Retirement goes bankrupt 3 years later in 2033. He notes that, if Social Security Retirement and other related programs (Medicare, Medicaid, and Social Security Disability) are not part of the deficit reduction, then ‘either taxes will rise steeply or other federal programs (defense, food stamps, environmental protection) will be cut sharply’. We are seeing these sharp decreases of the other federal programs with the FY 2014 and FY 2015 budgets just being enacted. He notes that the 3 arguments to prevent Social Security Retirement from being cut are false. Most Social Security beneficiaries are not poor but make over $35,000 (64.1%) a year and 25.9% make over $75,000 annually. These folks are not poor and could contribute further to the deficit reduction. The second argument concerns the fallacy that benefits were earned and saved. The Social Security Retirement program has always been one where the next generation paid for the past generation’s retirement. This is still true. No money was saved, it simply paid for current beneficiaries. If this program was subject to the US pension laws, it would have been taken over a long ago by the pension guarantee corporation and benefits would have been cut substantially. The third argument to prevent Social Security Retirement from being rationalized is that it does not contribute to the current deficit. That is not true. Since 2010, benefits have exceeded taxes and that will continue. That deficit position of Social Security will worsen as the baby boomers continue to retire. Let’s quit kidding ourselves and fix the program now while we still can and before it is too late. 2016 is the year when Social Security Disability goes bankrupt. 2026 is the year when Medicare goes bankrupt. 2033 is the year when Social Security Retirement goes bankrupt. I have outlined the many options available to our nation in this blog and in this website. The President and Congress need to act now.
Harry Pukay-Martin