It goes on to say that according to the latest annual report from trustees of the program, Social Security's trust funds will be empty by 2035. “The new projection doesn't mean retirees will no longer get checks in 16 years. But [unless Congress acts] the program will at that point only have enough revenue coming in to pay three-quarters of promised benefits through the end of 2093.”
CNN rightly points out that “lawmakers have long punted on addressing Social Security problems, which would likely entail raising payroll taxes, curtailing benefits or some combination of both.” That is very true. There were articles and op-eds dating back to the mid-80s making this point only to be ignored by Congress. When anyone hints at changing Social Security, instead of working together to fix it, the opposite party tries, usually successfully, to use misinformation to terrorize voters with images of themselves or their parents starving on the streets.
This political "third rail" that is Social Security is not mentioned in the article, and here is where the story begins to go astray. The next two paragraphs read:
“During the 2016 campaign, President Donald Trump said he wouldn't touch Social Security. He didn't believe he'd need to since his plan to boost economic growth to at least 4% would take care of Social Security's long-term solvency.
"The strong economy has not mitigated the entitlement's fiscal issues. And the federal government's deficit has grown, in part because of the 2017 Republican tax cuts.”
With no reference to the political sensitivity, they seem to blame the President for not taking a stronger stance. That he has a lot of company was omitted.
Earlier in the story they admit that the 2035 date is “one year later than last year's report projected.” So the strong economy may have had some impact on the situation. In fact, I wrote in 2016 that the trust fund projection was 15 years at that time. Now, 3 years later, it’s projected at 16 years. That’s a 4-year difference.
Earlier in the story they admit that the 2035 date is “one year later than last year's report projected.” So the strong economy may have had some impact on the situation. In fact, I wrote in 2016 that the trust fund projection was 15 years at that time. Now, 3 years later, it’s projected at 16 years. That’s a 4-year difference.
The strong economy has not solved the problem, but "mitigate" means to reduce or diminish. There is some strong evidence of such mitigation.
Why, in the same paragraph, jump from a discussion of Social Security problems to a critique of tax cuts? Those two are not related. Social Security is funded by a portion of the FICA tax that was not changed.
They then return to the subject with, “Social Security's total cost is expected to exceed its total income in 2020…. This is two years later than projected in last year's report.” Again, in their own words, this sounds like some degree of mitigation.
The story then digresses to Medicare, which has even a worse funding problem. That change probably explains why a big picture of Senator Sanders is placed right below the headline about Social Security. There can be no other explanation. Senator Sanders has been mute on Social Security.
On the other hand, this MarketWatch story gives a much more objective treatment of the Social Security trustee report. It also says that “there would be sufficient income coming in to pay 80% of scheduled benefits” rather than three-quarters and does not try to associate the President or tax cuts with the problem.
The obvious lesson is that Social Security continues to be in trouble with little hope of a short-term fix but is a little better off than it was a few years ago. The second is that the various media outlets manage to blend in their political biases by tone, by choice of what to report and what to leave out, by adding unrelated side comments and by shading the facts. This is just a single example of a single media outlet, but it is no wonder so many people, including those collecting Social Security, have such a poor understanding of the program (and of so many other issues). Skepticism and critical thinking are our only defense.
To get the full story, enter Social Security in the search box in the upper right to read all previous posts with Social Security in the title.
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