Could Social Security Go Broke?
Summary
The public is anxious because it has often been told that Social Security will “run out of money around 2042", that it “won’t be there for our young people,” that it will “go bankrupt.” In truth, our Social Security system will never “go bankrupt.” Businesses or individuals can go bankrupt when they are legally obligated to make payments, but don’t have enough money coming in to make them, and no way to increase that inflow of money. A U.S. government program like Social Security is in an entirely different situation. Social Security gets the money it needs to make benefit payments from taxes. If Social Security taxes and benefits get out of balance, either or both can be adjusted by our democratic processes.
Recommended Citation
Bergmann, Barbara R.
(2005)
"Could Social Security Go Broke?,"
The Economists' Voice:
Vol. 2
:
Iss.
1, Article 10.
Available at: http://www.bepress.com/ev/vol2/iss1/art10