Courtesy of U.S Census Bureau
A New Deal for America: How Social Security Redefined Government's Role
Modern Debate
Some members of Congress argue that Social Security benefits should be reduced as part of broader efforts to manage the federal debt, even though the program isn’t a major driver of that debt.
""No government can provide social security. It is not in the nature of government to be able to provide anything. Government itself is not self-supporting. It lives by taxation. Therefore, since it cannot provide for itself but by taking toll of what the people produce, how can it provide social security for the people?"
Garet Garrett, Journalist
Courtesy of Paw Research Center
Social Security operates on a pay-as-you-go system, where current workers fund current retirees. As the baby boomer generation retires and birth rates fall, there are fewer workers paying into the system while more people collect benefits, creating strain. Americans today live longer, with the average 65-year-old expected to live more than 20 years, compared to 14 years when Social Security began.
Courtesy of Committee for a Responsible Federal Budget
Social Security’s Trust Fund is projected to run out in 2035, at which point payroll taxes and benefit taxes would only cover about 75% of obligations. Lawmakers worry about this long-term shortfall and are debating whether to close the gap through benefit cuts, higher payroll taxes, or a mix of both.
Courtesy of American History
"Our basic objective toward which all others lead is to improve the welfare of the American people. In addition to economic prosperity, this means that we need social security in the fullest sense of the term; the people must be protected from the fear of want during old age, sickness, and unemployment."
Harry Truman: State of Union Message (1946)
Courtesy of American History
"One of America's most important institutions—a symbol of the trust between generations—is also in need of wise and effective reform. Social Security was a great moral success of the 20th century, and we must honor its great purposes in this new century. The system, however, on its current path, is headed toward bankruptcy. And so we must join together to strengthen and save Social Security."
President Bill Clinton: State of Union Message(1993)
Courtesy of American History
"As we fix Social Security, we also have the responsibility to make the system a better deal for younger workers. And the best way to reach that goal is through voluntary personal retirement accounts. Here is how the idea works. Right now, a set portion of the money you earn is taken out of your paycheck to pay for the Social Security benefits of today's retirees. If you're a younger worker, I believe you should be able to set aside part of that money in your own retirement account, so you can build a nest egg for your own future.."
President George W. Bush: State of Union Message(2005)
Some argue for reducing benefits and shrinking the payroll tax to preserve the system’s solvency, while others push to raise taxes and expand benefits to strengthen support for retirees. However, cutting benefits remains deeply unpopular and would fall hardest on middle and lower-income retirees who rely most on Social Security for stability.
Courtesy of Pew Research Center
"It's critical - that the people that are benefiting today from Medicare and Social Security that they not see benefit reductions. It's awfully hard to tell someone who might be 82, that they've gotta go back to work, because their benefits are gonna be chopped. That's not gonna happen."
Fred Upton, U.S Representative
Courtesy of Boston Globe
"But here's what I would tell people of my generation. I turn 40 this year. There isn't going to be Social Security. There isn't going to be Medicare when you retire. Forget about what your benefit is going to look like. There isn't going to be one if we don't make some reforms to save that program now."
Marco Rubio, U.S Senator
Courtesy of Pew Research Center
Experts warn that the longer Congress delays taking action, the more abrupt and painful the eventual adjustments will have to be. Addressing the issue sooner rather than later could allow for more gradual changes that protect both current beneficiaries and future generations.