“Suddenly” Social Security Is In Trouble

Turbo Tax Tim Geithner tells us:

Social Security’s annual surpluses of tax income over expenditures are expected to fall sharply this year and to stay about constant in 2010 because of the economic recession, and to rise only briefly before declining and turning to cash flow deficits beginning in 2016 that grow as the baby boom generation retires.

Of course what Geithner and the Democrats want you to believe is this sudden problem with both Social Security and Medicare has been brought on by the recession and, of course, that means it’s Bush’s fault.

But I took the opportunity to hit the QandO archives and found a couple of interesting live blogs Dale did. The first was the State of the Union address from February 3, 2005.

Thirteen years from now, in 2018, social Security will be paying out more than it takes in. And every year, the annual shortfall will get larger…By 2042 the system will be bankrupt.

His numbers were based on the 2004 Trustees report. That line, of course, was met by Democratic jeers.

A couple of months later at one of his rare news conferences, Bush again emphasized the point and adjusted the dates based on the 2005 Trustees report. As Dale live blogged it:

–Social Security will start spending more than it take in 2013. By 2040, it’ll be bankrupt.

Again, that was met by Democratic jeers. That’s because Bush mentioned private accounts. Incredibly, much to the horror of many on the right, he also mentioned means testing. But still, the Dems were more interested in blowing off the impending crisis as fiction than addressing it.

The same story was told the next year with the same results.

Our boy Harry Reid in May of ’06:

In a statement released Monday, Senate Minority Leader Harry Reid (D-Nev.) said the trustees’ report “confirms that, despite White House scare tactics, Social Security remains sound for decades to come.”

According to Reid, “The real threat to Social Security comes from Republicans, most of whom support and voted for privatizing Social Security.”

As it turns out Medicare/Medicaid is in much worse shape than Social Security, and deserves some discussion as well – but the Social Security question is instructive. This isn’t some ‘sudden’ problem brought on by the recession. This is one that was identified years ago and ignored by the very same people who are now trying to lay blame elsewhere. Just something to remember when they stand in front of the microphones, look directly into the cameras and lie through their teeth.

[Crossposted at QandO]

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