Social Security is on seriously wobbly legs

May 7 – A new US Treasury report has announced the Social Security program will only be able to pay 100% of benefits until 2033. 

The Old Age and Survivors Trust Fund has seen a $41 billion decline in the past year. 

Attorney Clint Barkdoll said, “We’ve been hearing this warning for years. It’s quickly running out of money and what the Treasury, the Social Security Administration said yesterday is once again, you have an all time record number of Social Security recipients and that’s a combination of retired people, older population, the baby boomers, and this ever growing segment of the population that’s drawing Social Security disability, because that’s coming out of the same fund. So you have record numbers of people drawing benefits, then you have fewer workers that are paying into the system. That, of course, creates real problems. I don’t know what the president, what Congress is doing about this. I mean, anyone that runs for president says they don’t want to touch Social Security. Even though everyone that looks at this knows this is an area that there needs to be some kind of reform. But there’s never any appetite in Congress or the White House to do anything.”

The Wall Street Journal today reported there are people in Washington, DC, that are thinking about just letting the fund run out of money. 

Barkdoll said, “This will be another program (that) the federal government, they’ll just subsidize it through other revenue streams at the federal level which would of course be a massive contribution to the federal deficit and the federal debt, but apparently that’s something being discussed.”

Michele Jansen of NewsTalk 103.7FM asked, “What revenue streams? Where are they going to get this from? It’s just going to be printed and borrowed. The financial expert from the Biden administration obviously has zero understanding of how this works. It’s ridiculous. Part of the problem is none of us really understands this and all these people clamor and cry about not touching my Social Security. Do you not understand first of all, you’re getting way more out of it than you ever contributed to it for most people? Then we’ve expanded all these definitions of disability, oh, I have anxiety and we’re creating a whole generation that has anxiety about everything. We’re creating all this anxiety and then we’re saying that that’s a disability. So you have many more people now getting Social Security disability, and yet somehow we have this, can’t touch it, can’t raise the age, can’t do anything. This is insanity. There’s not going to be any revenue streams to pay for this.”

Barkdoll said, “The disability piece is a huge part of this and it’s a big problem. Social Security, when this was devised and developed as part of the New Deal and FDR. I mean, it’s essentially a pyramid scheme. I don’t mean that in an illicit way or an illegal way. But it’s current workers that are funding the benefits for the recipients. The idea, of course, in theory is this would just go in perpetuity. You’re always going to have this flow of workers that can keep funding the benefits as people retire. It worked great for many, many decades, but our demographics are changing. We now have a lot more people drawing on it than the government ever imagined. There was never this idea that you’d have this massive pool of people drawing on the disability portion. If you look at the charts in the Journal about the disability Social Security recipients, it’s virtually a straight line up over the last 20 to 30 years and I don’t know what Congress does about this. They all know it’s a problem, but no one wants to touch this issue.”