Maybe the new editors at the WSJ can reinstitute some truth controls. There’s a glaring error in this story:
The Social Security program’s costs will exceed its income this year for the first time since 1982, forcing the program to dip into its nearly $3 trillion trust fund to cover benefits.
This is three years sooner than expected a year ago, partly due to lower economic growth projections, according to the latest annual report the trustees of Social Security and Medicare released Tuesday. The program’s income comes from tax revenue and interest from its trust fund.
The trust fund will be depleted in 2034 and Social Security will no longer be able to pay its full scheduled benefits unless Congress takes action to shore up the program’s finances. Without any changes, recipients then would receive only about three-quarters of their scheduled benefits from incoming tax revenues.
The report also said that Medicare’s hospital insurance fund would be depleted in 2026, three years earlier than anticipated in last year’s report. Absent changes, the program then would be able to handle 91% of costs.
The nation’s aging population is boosting the costs of Social Security and Medicare, while revenue gains lag due to slower growth in the economy and the labor force.
Where, exactly, is this $3 Trillion reserve fund, this “lockbox,” located? My guess would be in that D.C. museum with the Constitution, the dinos, and other things that don’t exist.
The “reserves” are but an accounting trick which, simply put, is just more debt for you and your kids to enjoy in the future.
There is probably some hidden truth in the story if one knows what to look for. Those dates in the late 20’s and early 30’s. Something else will probably fail around that time.