Workforce Participation Growth: Good, but…

Citing “a high degree of certainty” that Social Security’s much-publicized looming insolvency problem is not self-correcting, Mecatus Center’s Charles Blahous, in a post on, challenges financial media accounts of the projected impact of improvements in the U.S. labor force growth in the years ahead. His comments relate to reports in several publications that the U.S. economy’s growth is likely to result in delaying the insolvency problem, with some accounts suggesting the increased workforce participation could stave off the insolvency date as much as a full generation.

Blahous points out several key factors at play in the Social Security dilemma that need to be kept in perspective, beginning with the understanding that the currently-projected 2034 depletion date for the program’s Trust Funds is :…is an inadequate proxy for system financial health,” noting that the end date is essentially a point where corrective action is too late. In addition, he comments that, while increased workforce participation does result in increased tax income, it also means that future benefit obligations will likewise increase based on the manner in which benefits are calculated. Blahous concludes his article with an in-depth look at the Social Security Trustees’ projections, and the list of assumptions in its “low cost” scenario that could lead to delaying insolvency an additional 28 years, but renders the opinion that these assumptions would need to all break in favor of the program to produce any delay.

The Association of Mature American Citizens (AMAC) echoes Blashous’ concerns that the deferral of Social Security’s insolvency date under the current economic landscape is unlikely, and has for years been calling attention to the impending problem. In fact, AMAC representatives have been resolute in their mission to get the attention of lawmakers in Washington, meeting with many, many congressional offices and their legislative staffs over the past several years to address the problem. Learn more about AMAC’s proposed solution here…


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