Social Security Reform: A Retrospective on the 1983 Changes - Vox
For the second time in the past five decades, Social Security finds itself at a major decision point. One of the fundamental differences between now and the early 1980s, though, is the timing of the absolute financial crisis. The changes implemented in 1983 were an exercise in brinkmanship, with the program facing an immediate, near-term problem, while today’s crisis is more of a gradually evolving–one could stay moving at a glacial pace–problem that has been reported to Congress for almost three decades at this point. But despite the difference in timing, the fundamental issue is consistent…the program’s cash reserves are running out, and revenue and program costs have diverged.
So, with this as a backdrop, now’s a good time for those studying the solvency problem–and preparing to weigh in with thoughts on how to address it–to take a look at historically what took place in 1983. Dylan Matthews, senior correspondent and head writer for Vox’s Future Perfect publication, offers a review of the conditions that led up to the crisis over four decades ago, the process that resulted in a “fix” for the problems, and a glimpse of what might be learned from past history on this topic. He concludes with a quick look at what the future might hold for Social Security, summing the situation up with this broad and simplistic statement, “When the system is in shortfall, you can fix that by raising taxes or cutting benefits.”
Overall, this somewhat lengthy read provides a good, historical perspective on Social Security’s previous crisis and how America emerged from it. Dylan Matthews’ Vox post, titled “The bizarre true story of the last time America raised its retirement age,” can be found here.”
The 118th Congress may or may not elect to deal with the long-term Social Securuty problem, but it’s clear to virtually everyone examing the much-reported insolvency projections that correction is necessary within the next decade, preferably sooner to smooth the transition to a revised program.