As disability claims skyrocket, the Social Security gravy train is running out of money by 2016. So what do we do?
As previously reported by The Inquisitr, disability claims are skyrocketing, jumping up 29 percent to the point that 8.8 million Americans are receiving social security disability benefits. The data also revealed the Social Security administration paid out over $773 billion in benefits after receiving only $725 billion, leaving a deficit of nearly $48 billion.
Back in December of 2012, which is not too long ago, the SSA was estimating they’d run out of money for all Social Security funds by 2033. In 2023, the CBO estimates spending will exceed $1.4 trillion compared to tax revenues of $1.3 trillion, a shortfall of about $100 billion. But that estimate assumes Social Security exists in a bubble, which it does not. The Federal debt crisis is likely to encroach on Social Security’s solvency, which was supposed to be self-sustaining (it’s not).
Social Security in a nutshell assumes the populace needs guidance in saving for their eventual retirement. Social Security also provides a safety net for the disabled and a trampoline (hopefully not a hammock) for the unemployed. The idea is that everyone is forced to set aside money and the government will manage it, ahem, wisely. In theory that is how this entitlement program is supposed to work, but in practice the Federal government has mismanaged the money.
The fact that disability claims are skyrocketing is causing government officials to admit the Social Security Administration is running out of disability claims money by 2016:
“The CBO projects that the DI [Disability Insurance] trust fund will be exhausted during the fiscal year 2016. Under current law the Commissioner of Social Security may not pay benefits in excess of the available balances in a trust fund, borrow money for a trust fund, or transfer money from one trust fund to another.”
In short, it’s news like this that has experts predicting a worst case scenario of Social Security running out of money for all funds by 2031 or earlier. But that’s based upon the assumptions underwriting the numbers being true. A Google search brings up articles from 2010 claiming we would not see Social Security running out of money by 2049. So, not only is Social Security running out of money, it’s running out of money at a greatly accelerating pace.
With Social Security running out of money for skyrocketing disability claims, what do you think should be done?