Is There a Social Security Crisis?

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.