The Social Security Program and Its Funding Problems

Abstract

2018 was a pivotal year for the Social Security program. It was the first year since the 1983 amendments that the Old Age, Survivors and Disability Insurance (OASDI) trust funds spent more than they took in. This will continue until they are depleted in 2034. This article examines the operation of the OASDI program with particular attention to its funding. It concludes by questioning the myth that, until 2018, the OASDI trust funds held large amounts of surpluses. There has never been any real money there. It was spent by the Treasury Department as fast as it came in. The OASDI program has always been a pay-as-you-go system. That should be recognized by anyone involved in crafting a solution to the problem.