Social Security Solvency: Congressional Inaction is Not the Answer - mishtalk.com.; AMAC
The rhetoric is heating up these days on the subject of Social Security’s looming insolvency problem…and that’s certainly no surprise to anyone who’s been tuned in to this slow-moving train wreck. Indeed, through the years, many bills have been introduced in Congress to address the problem, but despite repeated warnings from the program’s governing bodies, essentially nothing has happened as the fiscal cliff approaches faster and faster. Insolvency is now a decade away, according to the most recent Social Security Trustees Report, so it’s fascinating to reflect on the positions taken by the current and recent presidential administrations on the problem.
Mishtalk.com, a global economics site covering interest rates and central bank policy featuring the viewpoints of registered investment advisor Mike “Mish” Shedlock, recently provided a retrospective on comments by President Joe Biden and former President Donald Trump regarding the long-term Social Security dilemma. Shedlock notes that both have suggested that no corrective action should be forthcoming. Given the dire projections laid out in the 2023 Trustees Report, that should resonate as an alarm bell for seniors already receiving their earned Social Security benefits and, equally loudly, for future retirees.
The mishtalk.com article, which you can access here, provides a glimpse of the problem, along with recaps of comments and suggestions from Heritage Foundation and the Social Security Expansion Act sponsored by Senators Bernie Sanders (I–VT) and Elizabeth Warren (D–MA), along with Representatives Jan Schakowsky (D–IL) and Val Hoyle (D–OR).
The mishtalk.com post also outlines the author’s thoughts on reform avenues to be considered (e.g., moving toward a “universal benefit” formula and a separate “wealth-building option” within Social Security), and closes with the question, “Are there any adults in the room willing to have an honest look at badly needed reforms?” In answer to that question, we suggest that attention be turned to the AMAC, Inc. / AMAC Action AMAC Social Security Guarantee proposal recently posted on the AMAC.us website. The statement on this page (amac.us/advocacy/issues/social-security/) sets the tone for AMAC’s proposal, “The Social Security Trust Fund’s insolvency is looming. The Old-Age and Survivors Insurance (OASI) retirement trust fund principal reserve would be exhausted in calendar year 2032 according to CBO estimates. At that time, there will not be sufficient income to meet the level of beneficiary commitments and shifting the fund to a cash-in-cash-out basis causing an approximate 23% reduction in benefits to all those receiving Social Security by 2033.”
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