The Truth about Social Security

Social Security has long been an issue that politicians handle with extreme care, as any attempt to change the fundamental structure of the program is politically risky.  Thus, the program is often referred to as the “third rail” of American politics.

So on one hand, it is not surprising that President Obama was hesitant to discuss the perilous state of the program during last night’s debate.  But shockingly, the President went 180 degrees in the other direction and said that Social Security is “structurally sound.”  The problem for the President is that his statement could not be further from the truth.  There are studies from think tanks across the political spectrum that confirm this fact, but we really do not have to look any further than the 252-page annual report provided by Social Security trustees in April of this year.  If the sheer size of this report intimidates you, I encourage you to at least read the roughly three-page overview at the beginning.

But here is the bottom line -- Social Security is insolvent.  Plain and simple.  In fact, on page four of the report, you can see that the “unfunded obligation for OASDI (Social Security) over the 75-year period is $8.6 trillion in present value and is $2.1 trillion more than the measured level of a year ago.”  Simply put, Social Security is in a deep hole and it is rapidly getting deeper (this graph from the Peterson Foundation puts it into good visual perspective).  In fact, the report from the Trustees projects that Social Security will not only be losing money, but will be out of money and unable to pay obligated benefits by 2033.  Does that sound “structurally sound” to you?

So when Governor Romney and others talk about ideas to preserve Social Security, they are simply acknowledging the fact that the program is insolvent, and are resisting the urge to deceive workers who are paying into the program and expecting to be paid benefits one day.  It is perfectly fine to disagree with their proposed solution so long as you acknowledge the problem and support a viable solution.

When the President, in full possession of these facts, looks into the camera and calls a collapsing program “structurally sound,” he is abdicating his responsibility to tell the American People the truth, and sending a clear signal that he has no plans to propose a solution.  After all, if it is “structurally sound,” there is no need to fix it! 

The federal government has promised to provide a safety net to America’s seniors.  Our nation’s leaders have a moral obligation to be upfront with the American people about how they are following through on that promise.

There is a desperate need for a real conversation about the sober reality of Social Security.  Of course there will be disagreements on how to fix it.  But when the President of the United States refuses to even acknowledge the problem and chooses instead to be dishonest with the American People, he has done all of us a disservice. 

Mr. President, Social Security is far from “structurally sound.”  In fact, it is fatally flawed and rapidly running out of money.  It is time to stop playing games and tell us how you plan to fix it.