{"id":288545,"date":"2021-07-01T16:55:00","date_gmt":"2021-07-01T13:55:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/outside-the-box-saving-social-security-will-be-far-harder-this-time-than-it-was-in-1983\/"},"modified":"2021-07-01T16:55:00","modified_gmt":"2021-07-01T13:55:00","slug":"outside-the-box-saving-social-security-will-be-far-harder-this-time-than-it-was-in-1983","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/outside-the-box-saving-social-security-will-be-far-harder-this-time-than-it-was-in-1983\/","title":{"rendered":"#Outside the Box: Saving Social Security will be far harder this time than it was in 1983"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36e1321782d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36e1321782d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/outside-the-box-saving-social-security-will-be-far-harder-this-time-than-it-was-in-1983\/#Unlike_nearly_40_years_ago_todays_problems_mean_red_ink_for_eternity\" >Unlike nearly 40 years ago, today\u2019s problems mean red ink for eternity<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/outside-the-box-saving-social-security-will-be-far-harder-this-time-than-it-was-in-1983\/#Brenton_Smith\" >Brenton Smith<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Outside the Box: Saving <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a> Security will be far harder this time than it was in 1983<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Unlike_nearly_40_years_ago_todays_problems_mean_red_ink_for_eternity\"><\/span>\n  Unlike nearly 40 years ago, today\u2019s problems mean red ink for eternity<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000313674\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000313674\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Social Security is America\u2019s largest government program and arguably the most important one given that it serves as a lifeline for tens of millions of Americans.<\/p>\n<p> By now, most voters have heard that vital lifeline will be at risk in the coming years. Unfortunately, too many also have heard that the country has dealt with this issue before and that we need only to follow the example of the past to put the program on stable footing. <\/p>\n<div class=\"paywall\">\n       This is a false and dangerous narrative, one that fuels the complacency that fosters continued inaction in Congress.<\/p>\n<p>As explained in the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ssa.gov\/oact\/trsum\/\" class=\"icon none\">latest Trustees Report<\/a>, absent action by Congress the Social Security Trust Fund should able to pay full benefits for about 14 years, or roughly the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ssa.gov\/cgi-bin\/longevity.cgi\" class=\"icon none\">life expectancy<\/a> of someone turning 73 today. Should Congress fail to take action on the program\u2019s finances, these people will be more vulnerable and dependent on Social Security at the very moment when the dramatic benefit cuts materialize.<\/p>\n<p>Keep in mind that this outlook isn\u2019t a guarantee. It is actually a stern warning about what might h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>en even in a healthy and growing economy. In response, policy experts and politicians argue the unimaginable: Congress needs to grow up and work together as it did in 1983.<\/p>\n<p>The analytical comparison of situation today and that of 1983 represents an incomplete view of Social Security\u2019s condition, one shorn of crucial historical and financial context. The crisis in 1983 arose from a different cause and augured smaller consequences over a different duration. Moreover, Congress in 1983 had a wide range of tools geared to hold off a systemic breakdown.<\/p>\n<p>The painful truth is that the comparison is at best wishful thinking and at worst a fool\u2019s errand to distract voters from the drastic consequences of further delay.\u00a0<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetPullQuote\n            inline\n    scope-web|mobileapps\n  article__inset\n          article__inset--type-InsetPullQuote\n            article__inset--inline\n  \"><\/p>\n<div class=\"wsj-article-pullquote article__inset__pullquote \">\n<p class=\"pullquote-content article__inset__pullquote__quote\">\n        <span class=\"l-qt article__inset__pullquote__mark--left\">\u201c<\/span><br \/>\n        The same workers who saved Social Security in 1983 will have to save it again in 2021.<br \/>\n        <span class=\"r-qt article__inset__pullquote__mark--right\">\u201d<\/span><\/p><\/div>\n<\/p><\/div>\n<p>       Believe it or not, Social Security presented a relatively small economic problem in 1983 despite all of wistful memories about political leadership and bipartisan efforts. At the time, the program only faced a small and temporary gap in cash flow caused by transient unfavorable economic results; a combination of sluggish wage growth and high inflation generated a short-term imbalance where the program would face a brief period of a shallow insolvency before returning to the black as the last round of Boomers joined the workforce.<\/p>\n<p> In contrast, the current situation threatens to deliver large reductions that grow into eternity driven by permanent structural forces: the aging of our population and the decline in fertility rates since the peak of the baby boom. These are foundational challenges, magnified by Congressional inaction over decades. Combined, the actuaries at the Social Security Administration expect the red ink flows deeper and redder \u2014\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ssa.gov\/oact\/TR\/2019\/IV_B_LRest.html#462733\" class=\"icon none\">forever<\/a>.<\/p>\n<p>Another distinction between the two periods is that Congress no longer has the range of remedies with which to deal with the imbalances. Four decades ago, it was possible to phase changes into the system in such a way that the majority of voters were only slightly affected. The actual legislation did not change <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ssa.gov\/policy\/docs\/ssb\/v41n3\/v41n3p3.pdf#page=16\" class=\"icon none\">the scheduled Social Security tax rate of 12.4%<\/a>, and largely maintained the retirement age for those 30 and older. <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>The hard truth is the bipartisan accord that we laud today was little more than an agreement that our kids would work more and get less.<\/p>\n<p>These legislative remedies for the most part are still in process. Two changes account for the bulk of the 1983 fix: advancing the retirement age by two years and taxing some benefits. The normal retirement age does not reach 67 until next year, the savings from which are expected to dribble in over the next three decades. Revenue from the taxation of benefits is projected to rise at 9% per year, driven by more and more seniors reaching a tax trigger that is not adjusted for inflation. Combined, workers now approaching retirement already face substantial benefit cuts vs. their predecessors.<\/p>\n<p>That 1983 strategy does not offer the solution to today\u2019s problem. In fact, it presents a major obstacle to policy makers who wish to consider alternatives. <\/p>\n<p>Keep in mind that any benefit reductions we consider today will almost certainly have to be applied to the people who absorbed the brunt of the changes made in 1983. As a consequence, the 1983-redux idea implies that the same workers who saved Social Security in 1983 will have to save it again in 2021.<\/p>\n<p>There is no denying that Social Security was in a crisis situation in 1983, one that required powerful people to compromise with respect to their strongly held policy differences. As noble as their actions were, their success provides little meaningful insight into the far greater challenges that the program faces today. It was a different problem in a different time when more gradual change was possible.<\/p>\n<p>The hard truth for voters who believe that Congress will step in at the last minute and produce a painless solution is you are waiting for Godot. Postponing corrective action not only threatens future of current workers; it undermines the retirement security of today\u2019s seniors as well. We are the people over whom so many hands have been wrung.<\/p>\n<p><em>Brenton Smith writes about Social Security.<\/em><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Brenton Smith\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Brenton_Smith\"><\/span>Brenton Smith<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-74C9-4A51D9136188%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Outside the Box: Saving Social Security will be far harder this time than it was in 1983&#8221; Unlike nearly 40 years ago, today\u2019s problems mean red ink for eternity Social Security is America\u2019s largest government program and arguably the most important one given that it serves as a lifeline for tens of millions of Americans&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":288546,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-288545","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/288545","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=288545"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/288545\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/288546"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=288545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=288545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=288545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}