No, But the Privatizers Gave It Their Best Shot
First, how bad is the situation?
- The Social Security Trust Fund has been around for about 70 years.
- It’s at an all-time high of over $2.5 trillion dollars.
- Social Security has been tweaked many times to keep it in ballance.
- If we do nothing the Trust Fund will run out in about 2035.
- But Social Security would not be bankrupt.
- Its continuing payroll contributions would still pay about 70% of legally required benefits.
- In 1983, the Trust was a few months from running out of money when Greenspan fixed it.
- That was 100 times closer to a crisis then now, and no one even remembers.
- That fix was good for over 50 years, and we’ve got about 25 left to go.
What Would Bush’s Privatization Plan Have Done?
- It would have diverted almost half the Social Security payments into private accounts, starting immediately.
- That would have forced Social Security to dip into the Trust Fund immediately
- The Fund would have run out up to 20 years sooner.
- And then when the Trust Fund ran out, with half the payments diverted to private accounts, payments to those under the old system would have been slashed something like 70%.
- This really would have been a crisis.
- With privatizers claiming there’s a crisis for that last ten years, and proposing a plan that would cause one, it’s pretty clear that a crisis is what they want.
- But then, a lot of Republican have wanted to kill Social Security from it’s inception.