Social Security has been one of the most well-known government welfare programs since its creation in 1935, yet the program is set to completely run out of money by 2034.
Economic experts have been researching Social Security and have observed the concerning status of one of the government’s most expensive programs.
John Stossel, a well-known commentator, pointed out in an op-ed for Fox News that the system does not work like it did at the start.
“They assumed that FICA payments from young workers would cover the cost of sending checks to older people,” wrote Stossel. “After all, at the time, most Americans died before they reached 65. Now, however, people keep living longer. There just aren’t enough young people to cover my Social Security checks. So Social Security is going broke. This year, the program went into the red for the first time.”
While the program will be able to pay out full benefits until 2034, a summary of the 2018 reports by the Social Security Administration says that Medicare’s funding will run out in 2026.
Extensive reforms are needed in order to stop the decline of the program, but voters are afraid of Social Security cuts and many presidential nominees promise to save the program with little to no change to the current system.
Some groups like the Heritage Foundation believe that reform may require difficult changes, like cutting benefits for the rich and raising the retirement age to 70. Budget analyst, Romina Boccia, says that raising taxes for the rich is not the answer.
“There isn’t enough money, even that the rich would have, to pay for the $200 trillion in unfunded liabilities,” said Boccia in an interview with Stossel.