https://issuesinsights.com/2023/04/04/social-security-is-in-far-worse-shape-than-you-think/
The latest Social Security annual report, projecting that the Trust Fund will be exhausted in 2033, a year sooner than previously thought, politely explains that the Trustees “reassessed their expectations for the economy in light of recent developments.”
What recent developments, you ask? Rising inflation, declining output, weakened GDP forecast, and worsening labor productivity.
In other words, this is another bitter fruit from President Joe Biden’s poisoned economic tree.
Treasury Secretary Janet Yellen responded to the news about Social Security that “the Biden-Harris administration is committed to ensuring the long-term viability of these critical programs so that retirees can receive the hard-earned benefits they’re owed.”
But in his latest budget proposal, Biden offered no proposals whatsoever to shore up Social Security or prevent a looming 23% cut in retirement benefits that current law will require once the Trust Fund is emptied.
As bad as this seems, Social Security’s financial picture is actually far more dire. It’s likely that the Trust Fund won’t even make it to 2033.
The Social Security trustees have had to downgrade the Trust Fund repeatedly for the past 40 years when their economic and demographic assumptions turned out to be too optimistic. Back in 1983, for example, the trustees promised that the Trust Fund would remain solvent through 2058. By 2003, they were saying it would only be solvent until 2044.