Fixing Social Security

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Since its inception, Social Security has been crucial to American retirement, but demographic shifts—longer lifespans and declining birthrates—have led to a situation where benefits exceed revenue. Without reforms, 83 million Americans face a 20 percent benefit cut in 2034. This work explores the historical significance of Social Security in American politics, the reasons behind Congress's inaction on its insolvency for three decades, and potential solutions. Legislators have several options: raising taxes, cutting benefits, or attempting to reinvent the program, as seen in past efforts. However, each option carries costs, and lawmakers often hesitate to act due to fears of electoral backlash. The author investigates the design of the system and the allocation of costs and benefits among workers, employers, and beneficiaries from 1935 to 1983. Additionally, the analysis delves into public support for the program and the growing polarization between Democratic and Republican representatives regarding its future. As Social Security approaches a critical juncture, this examination provides an in-depth look at the political divides and offers insights into possible paths forward before it’s too late.