ARRA News Service facebook page
News for social, fiscal & national security conservatives who believe in God, family & the USA. Upholding the rights granted by God & guaranteed by the U.S. Constitution, traditional family values, "republican" principles / ideals, transparent & limited "smaller" government, free markets, lower taxes, due process of law, liberty & individual freedom. Content approval rests with the ARRA News Service Editor. Opinions are those of the authors. While varied positions are reported, beliefs & principles remain fixed. No revenue is generated for or by this site - no paid ads - no payments for articles. Fair Use doctrine is posted & used.
Editor/Founder: Bill Smith, Ph.D. [aka: OzarkGuru & 2010 AFP National Blogger of the Year]
Contact: (Pub. Since July, 2006)
    Home Page

One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors. -- Plato (429-347 BC)

Thursday, September 21, 2017

The End is Near (sort of)

by Jim Musser: Ten years ago, the main concern for the Social Security Trust Fund was that dedicated tax revenues would fall below program costs starting in 2017. That has come to pass. According to the Trustees of Social Security and Medicare, Social Security will run an annual non-interest deficit of approximately $51 billion between 2017 and 2020 after which it will steeply rise.

According to current projections, the Social Security Trust Funds will be exhausted completely in 2034, which is seven years earlier than the Social Security Trustees thought just ten years ago in 2007. What this means for current and future beneficiaries is when the Trust Fund balance reaches “zero” there will be an across the board cut to benefits to match the amount of dedicated Social Security taxes being paid. That cut to current beneficiaries will be as much as twenty-five percent of what they are receiving. The social consequences of such a substantial cut would be disastrous for the millions of seniors dependent on Social Security for their survival.

Social Security will not go bankrupt as some in the chattering class say. The law does not permit the program to pay out more than it takes in through the Old Age and Survivors and Disability Insurance taxes withheld from everyone’s pay. That is why there will be such a dramatic cut in benefits. Congress could choose to make up the shortfall by taking money from general revenues but that is not a sustainable proposition given that Social Security, Medicare, Medicaid, Obamacare, and interest on the debt already consume more than two-thirds of all federal spending.

The problem is exacerbated by the huge wave of Baby Boomers retiring, which has begun and will continue over the next fifteen years. This retirement wave is increasing the cost of Social Security payments just at the time when there are fewer workers coming into the workforce and paying into system. According to the Social Security Administration, there are now fewer than three workers supporting each beneficiary and that number will drop further in the coming decade. Longer life expectancy and lower fertility rates undermine the program even further.

The problem facing Social Security is inherent in its design. The system was created in 1935 as an innovative form of “social insurance” rather than a welfare program and it was based on the premise that there always would be substantially more workers paying into the system than retirees receiving benefits. It also set the retirement age at 65, which, at that time, was the average life expectancy. The theory was that most people would not collect too long or too much and the program designers never anticipated large numbers of beneficiaries collecting payments for twenty years or more.

At the time that Social Security was being designed, a contributory program in which workers provided for their future retirement security by making payments into a system that used the funds to pay current benefits made sense compared to the many radical plans floated during the depths of the Great Depression. The flaw in the design would only become apparent many years later as the number of workers per beneficiary began to decline. In 1940, the first year in which Social Security benefits were paid, there were 159 workers for each beneficiary. By 1950, that ratio had declined to 16.5 workers per beneficiary. By 1960 the ratio had fallen to 4:1, and today there are 2.8 workers for each recipient and that is projected to further decline to only two workers per beneficiary by the year 2030.

In the mid-1990s, Congress passed legislation gradually increasing the retirement age from 65 to 67. While that was a step in the right direction, Congress must act to avert a real crisis which would have devastating effects on not just the beneficiaries of Social Security but all of us.

Clearly, the sooner Congress acts to address these long-range problems the better for the beneficiaries and the taxpayers alike. A combination of further increasing the retirement age, increases in OASDI-dedicated taxes, means testing, and private sector solutions are on the table. As the Trustees say in their report, the projected trust fund deficits should be addressed in a timely way to allow for a gradual phasing in of the necessary changes and to provide advance notice to workers. Making adjustments sooner will allow people to plan properly and avoid personal and financial crises.

The Trustees of Social Security and Medicare are Secretary of the Treasury Steven Mnuchin, Secretary of Health and Human Services Dr. Tom Price, Secretary of Labor Alex Acosta, and Social Security Commissioner Nancy Berryhill. There is a vacancy in each of the two Public Trustee positions. Regardless of which party has controlled the White House, the reports of the trustees have been unanimous, bi-partisan, and consistent over time. Congress would do well to heed their advice.
James C. Musser is a senior fellow with the Thomas Jefferson Institute for Public Policy. Musser has spent over twenty years in the public policy arena serving as Senior Staff Counsel to Congressman Jim Bunning of Kentucky and most recently acting as Special Advisor to the Chairman of the House Budget Committee. Musser previously served as Vice President at the Mercatus Center at George Mason University in Arlington, Virginia.

Tags: social security, the end is near,
Ja,es Musser, Thomas Jefferson Institute
To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service and "Like" Facebook Page - Thanks!
Posted by Bill Smith at 9:00 AM - Post Link


Post a Comment

<< Home

View U.S. National Debt

Don't miss anything!
Subscribe to the
ARRA News Service
It's FREE & No Ads!

You will receive a verification email
& must validate you subscribed!

You Then Receive One Email Each AM
With Prior Days Articles / Toons / More

Also, Join us at:

Recent Posts:
Personal Tweets by the editor:
Dr. Bill - OzarkGuru - @arra
#Christian Conservative; Retired USAF & Grad Professor. Constitution NRA ProLife schoolchoice fairtax - Editor ARRA NEWS SERVICE. THANKS FOR FOLLOWING!

Action Links!
Arkansas State Senators
AR State Representatives
Arkansas Governor Office
Arkansas Attorney General
Bankrupting America
US House of Representatives
US Senators
Family Research Council
Sunshine Review

Facebook Accts - Dr. Bill Smith
ARRA News Service
Arkansans Against Big Government
Alley-White Am. Legion #52
Catholics & Protestants United Against Discrimination
End Taxpayer Funding of NPR
Overturn Roe V. Wade
Prolife Soldiers
Project Wildfire 4 Life
Republican Liberty Caucus of Arkansas
The Gold Standard
US Atty Gen Loretta Lynch, aka Eric Holder, Must Go
Veterans for Sarah Palin
Why Vote for Hillary (Satire)
FB Groups:
Arkansas For Sarah Palin
Arkansas Conservative Caucus
Arkansas County Tea Party
Arkansans' Discussion Group on National Issues
Blogs for Borders
Conservative Solutions
Conservative Voices
Defend Marriage -- Arkansas
FairTax Nation
Arkansas for FairTax
Friends of the TEA Party in Arkansas
Freedom Roundtable
Pro-Life Rocks - Arkansas
Republican Network
Republican Liberty Caucus of AR
Reject the U.N.


Request Via
Article Comment

Links to ARRA News
A Patriotic Nurse
Agora Associates
a12iggymom's Blog
America, You Asked For It!
Americans for a Free Republic
America's Best Choice
America's Whatchtower
An Ol’ Broad’s Ramblings
ARRA Twitter
As A Matter of Fact
As The Crackerhead Crumbles
Baaad Media!
Black & Right
Blogs For Borders
Blogs for Palin
Blow the Trumpet Ministry
Boot Berryism
Cap'n Bob & the Damsel
Chicago Ray Report
Chuck Baldwin - links
Citizen Pamphleteer
Common Cents
Conservative Hideout
Conservative Observer AZ
Conservative Voices
Conway Real Deal
Defeat Obama's Agenda
Diana's Corner
eGOP News
Florida Pundit
Franklin Online Outreach
Freedom For US Now
Free Zone Media Center
For God and Liberty
Garland County Republicans
Greater Fitchburg For Life
Lasting Liberty Blog
Liberal Isn't Amy
Liberty's Lifeline
Maggie's Notebook
Marathon Pundit
Monkey in the Middle
NASA Satellites
No Runny Eggs
Okie Campaigns
Our Voices Arkansas
Patriot's Corner
Publius Forum
Randy's Roundtable
Real Debate Wisconsin
Religion and Morality
Right on Issues that Matter
Right Reason
Rocking on the Right Side
Saber Point
Saline Watchdog
Secure Arkansas
Sentry Journal
Sultan Knish
Stop Obama Satire & Cartoons
The Arkansas Patriot
The Audacity of Logic
The Blue Eye View
The Bobo Files
The Born Again Americans
TEA Party Cartoons
The Conservative Citizen
The Foxhole | Unapologetic Patriot
The Liberty Republican
The Lid
The Looking Spoon
The Maritime Sentry
The O Word
The Path to Tyranny Blog
The Real Polichick
The War on Guns
Truth About Obamacare
Twitter @ARRA
Warning Signs
Women's Prayer & Action

Editor's Managed Twitter Accounts
Twitter Dr. Bill Smith @arra
Twitter Arkansas @GOPNetwork
Twitter @BootBerryism
Twitter @SovereignAllies
Twitter @FairTaxNation

Editor's Recommended Orgs
Accuracy in Media (AIM)
American Committment
American Culture & Faith Institute
American Enterprise Institute
American Family Business Institute
Americans for Limited Government
Americans for Prosperity
Americans for Tax Reform
American Security Council Fdn
AR Faith & Ethics Council
Arkansas Policy Foundation
Ayn Rand Institute
Bill of Rights Institute
Campaign for Working Families
CATO Institute
Center for Individual Freedom
Center for Immigration Studies
Center for Just Society
Center for Freedom & Prosperity
Citizens Against Gov't Waste
Citizens in Charge Foundstion
Coalition for the Future American Worker
Competitive Enterprise Institute
Concerned Veterans for America
Concerned Women for America
Declaration of Am. Renewal
Eagle Forum
Family Research Council
Family Security Matters
Franklin Center for Gov't & Public Integrity
Freedom Works
Gingrich Productions
Global Incident Map
Great Americans
Gold Standard 2012 Project
Gun Owners of America (GOA)
Heritage Action for America
David Horowitz Freedom Center
Institute For Justice
Institute for Truth in Accounting
Intercollegiate Studies Institute
Judicial Watch
Less Government
Media Reseach Center
National Center for Policy Analysis
National Right To Work Foundation
National Rifle Association (NRA)
National Rifle Association (NRA-ILA)
News Busters
O'Bluejacket's Patriotic Flicks
Open Secrets
Presidential Prayer Team
Religious Freedom Coalition
Renew America
Ron Paul Institute
State Policy Network
Tax Foundation
Tax Policy Center
The Club for Growth
The Federalist
The Gold Standard Now
The Heritage Foundation
The Leadership Institute
Union Facts

Blogs For Borders

Reject the United Nations

Adopt Our Troops in Prayer

Thousands of Deadly Islamic Terror Attacks Since 9/11

FairTax Nation on FaceBook
Friends of Israel - Stand with Israel
Blog Feeds
Syndicated - Get the ARRA News Service feed Syndicated!
ARRA Blog Feed

Add to Google Reader or Homepage

Add to The Free Dictionary

Powered by Blogger

  • To Exchange Links - Email:!
  • Comments by contributing authors or other sources do not necessarily reflect the position the editor, other contributing authors, sources, readers, or commenters. No contributors, or editors are paid for articles, images, cartoons, etc. While having reported on and promoting beliefs associated with the former Arkansas Republican Assemblies (ARRA), this blog/site is controlled and supported by the editor. This site/blog does not advertise for money or services nor does it solicit funding for its support.
  • Fair Use: This site/blog may contain copyrighted material the use of which has not been specifically authorized by the copyright owner. Such material is made available to advance understanding of political, human rights, economic, democracy, and social justice issues, etc. This constitutes a 'fair use' of such copyrighted material as provided for in section Title 17 U.S.C. Section 107 of the US Copyright Law. Per said section, the material on this site/blog is distributed without profit to readers to view for the expressed purpose of viewing the included information for research, educational, or satirical purposes. Any person/entity seeking to use copyrighted material shared on this site/blog for purposes that go beyond "fair use," must obtain permission from the copyright owner.
  • © 2006 - 2018 ARRA News Service
Creative Commons License
Creative Commons Attribution Noncommercial Share Alike 3.0 Unported License.