Reason.com - Free Minds and Free Markets
Reason logo Reason logo
  • Latest
  • Magazine
    • Current Issue
    • Archives
    • Subscribe
    • Crossword
  • Video
  • Podcasts
    • All Shows
    • The Reason Roundtable
    • The Reason Interview With Nick Gillespie
    • The Soho Forum Debates
    • Just Asking Questions
    • The Best of Reason Magazine
    • Why We Can't Have Nice Things
  • Volokh
  • Newsletters
  • Donate
    • Donate Online
    • Donate Crypto
    • Ways To Give To Reason Foundation
    • Torchbearer Society
    • Planned Giving
  • Subscribe
    • Reason Plus Subscription
    • Print Subscription
    • Gift Subscriptions
    • Subscriber Support

Login Form

Create new account
Forgot password

Policy

Social Security Trust Fund a Tad Rockier Than Believed

J.D. Tuccille | 2.7.2013 1:48 PM

Share on FacebookShare on XShare on RedditShare by emailPrint friendly versionCopy page URL
Media Contact & Reprint Requests

With the certainty of a Hollywood doomsday asteroid, we know that the financial day of reckoning for Social Security approaches. But whereas giant rocks from space loom ever closer at a steady pace until Bruce Willis drops by to blast them to smithereens, Social Security's demise seems to be accelerating. At least, that's what Investor's Business Daily tells us after running the numbers.

Social Security's financial outlook took another hit this week, as the Congressional Budget Office hiked its estimate for cash deficits from 2013 to 2022 by $212 billion.

The wider deficits — mainly due to weaker revenue estimates — mean a quicker depletion of Social Security's trust fund, after which the program could only afford to pay about 75% of benefits.

Last year, IBD was on the money in predicting, based on CBO's 10-year outlook, that the Social Security Administration would move up the trust fund exhaustion date to 2033 from 2036. Now IBD finds that CBO's fresh estimates point to the trust fund running dry in 2031, though the retirement program's actuaries don't rely on CBO data.

The CBO's latest figures are here (PDF), by the way. You'll notice that the numbers show the Disability Insurance trust fund running out in 2016, though the document assumes that benefits will continue to be paid in full. That's because the law requires the CBO to make that assumption.

But, of course, pay no attention. There's nothing to see here.

Note: As pointed out in the comments, there is no Social Security trust fund, in reality. However, using the government's own phony-baloney assumptions, matters look not so good.

The Rattler is a weekly newsletter from J.D. Tuccille. If you care about government overreach and tangible threats to everyday liberty, this is for you.

This field is for validation purposes and should be left unchanged.

NEXT: Sen. Menendez Says He Contacted Health Agency over Billing Practices

J.D. Tuccille is a contributing editor at Reason.

PolicySocial Security
Share on FacebookShare on XShare on RedditShare by emailPrint friendly versionCopy page URL
Media Contact & Reprint Requests

Show Comments (85)

Latest

She Got a Permit for Her Chickens. Now the City Is Fining Her $80,000.

C. Jarrett Dieterle | 6.28.2025 6:30 AM

'We Can't Let These Sheep Go'

Fiona Harrigan | From the July 2025 issue

New Orleans City Council Considers Ordinance To Adopt Real-Time Facial Recognition Technology

Ronald Bailey | 6.27.2025 5:00 PM

Clarence Thomas Undermines Free Speech in Porn Site Age-Verification Case

Damon Root | 6.27.2025 4:00 PM

America Has Plenty of Experience With Government-Run Stores, and It Isn't Pretty

Joe Lancaster | 6.27.2025 3:40 PM

Recommended

  • About
  • Browse Topics
  • Events
  • Staff
  • Jobs
  • Donate
  • Advertise
  • Subscribe
  • Contact
  • Media
  • Shop
  • Amazon
Reason Facebook@reason on XReason InstagramReason TikTokReason YoutubeApple PodcastsReason on FlipboardReason RSS

© 2024 Reason Foundation | Accessibility | Privacy Policy | Terms Of Use

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

r

Do you care about free minds and free markets? Sign up to get the biggest stories from Reason in your inbox every afternoon.

This field is for validation purposes and should be left unchanged.

This modal will close in 10

Reason Plus

Special Offer!

  • Full digital edition access
  • No ads
  • Commenting privileges

Just $25 per year

Join Today!