By Mike Maharrey
Last year, Social Security and Medicare trustees warned that the programs are going broke. A year later — they’re still going broke.
This shouldn’t come as a shock to anybody. It’s yet another example of the ineptitude of the political class in Washington D.C. And yet people still clamor for these same politicians and bureaucrats to take control over more and more aspects of their lives.
According to the annual Social Security and Medicare trustees report that was released Monday, Social Security will begin dipping into reserves in order to pay out benefits next year and those reserves will run dry in 2035. At that point, the program will no longer be able to pay out full benefits. In other words, Social Security recipients will see their benefits cut.
Analysts project Social Security’s expenses will exceed revenues as early as next year, according to the report. That means the program will have to begin spending money held in its trust fund in order to meet its obligations. While the Social Security administration has dipped into reserves before, analysts project this is now a long-term trend with no sign of reversal.