It's the economy, stupid.
Political strategist James Carville coined that phrase during Bill Clinton's 1992 presidential run against George H.W. Bush to remind Democrats to focus on pocketbook issues, but some ***** ysts said that logic can also be applied to keep Social Security afloat.
The trust fund that supplements incoming payroll taxes to pay monthly Social Security benefits is expected to run dry by the end of 2032, according to the program's trustees. When that happens, the law requires benefits to be reduced by an estimated 22% to ensure the program's costs do not exceed its revenues.
While Congress has yet to raise taxes, cut benefits, or do both to keep affording payouts as population growth slows, some economists say the strongest Social Security reforms may not look like Social Security policy at all. Instead, they say, Congress should shift its focus to managing the economy better to encourage more Americans to work and earn.
"Social Security is a reflection of, and is supported by, the strength of the economy," said economist and Social Security expert Kathryn Anne Edwards at center-left think tank Roosevelt Institute. "Who is working, how much they earn, how healthy they are, and how much they save matter more than the head count. People could live longer, have fewer kids, and have a solvent Social Security if workers earned enough money."
#economy #taxes
Political strategist James Carville coined that phrase during Bill Clinton's 1992 presidential run against George H.W. Bush to remind Democrats to focus on pocketbook issues, but some ***** ysts said that logic can also be applied to keep Social Security afloat.
The trust fund that supplements incoming payroll taxes to pay monthly Social Security benefits is expected to run dry by the end of 2032, according to the program's trustees. When that happens, the law requires benefits to be reduced by an estimated 22% to ensure the program's costs do not exceed its revenues.
While Congress has yet to raise taxes, cut benefits, or do both to keep affording payouts as population growth slows, some economists say the strongest Social Security reforms may not look like Social Security policy at all. Instead, they say, Congress should shift its focus to managing the economy better to encourage more Americans to work and earn.
"Social Security is a reflection of, and is supported by, the strength of the economy," said economist and Social Security expert Kathryn Anne Edwards at center-left think tank Roosevelt Institute. "Who is working, how much they earn, how healthy they are, and how much they save matter more than the head count. People could live longer, have fewer kids, and have a solvent Social Security if workers earned enough money."
#economy #taxes
2 months ago
