This year’s Social Security trustees
report was released with little fanfare, as the projected date of Social
Security’s financial insolvency held steady at 2033.[1]
Many analysts and lawmakers have pointed to 20 years of alleged
solvency as an excuse to delay meaningful Social Security reform.
However, if history is any guide to future solvency, the Social Security
program could become insolvent much sooner than 2033.
Past Reforms Have Failed
Social Security has been reformed
numerous times throughout history, often in response to deteriorating
program finances. In 1977, lawmakers enacted reforms to Social Security
that were expected to keep the program solvent over the next 50 years.[2]
But just six years and one double-dip recession later, Social Security
was confronted with immediate insolvency. In 1983, Social Security was
mere months from being unable to send out benefit checks due to lack of
finances.
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