The Social Security Administration’s latest report confirms that retirement benefits will have to be cut in 12 years. Far more money is going out of Social Security than is coming in. Over the next three decades, benefits will outstrip revenues by $21 trillion. Congress needs to do something or retirees will face a 23% cut in benefits in 2035.
Yet, in Washington, D.C., the byword is “Man the barricades!” We mostly hear noise. Interest groups, advocates, and politicians are yelling talking points past one another: “Hands off Social Security,” “No new taxes,” and the like. Magical thinking abounds. Both parties disavow the idea of extending the life of the trust fund by reducing benefits by a little bit…. (Read more)