Senator Tuberville thinks Social Security is wasting taxpayer money. What’s wrong – and what it would take to fix it
Republican Senator Tommy Tuberville of Alabama has a reputation as a controversial political figure. In particular, his stock market trading practices have raised eyebrows – especially given the power and influence his position gives him.
More recently, he has launched numerous attacks on the nation’s crumbling Social Security system – from taxing benefits to reducing its funding.
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Tuberville made this fearless, blustering prediction at a Senate Health, Education, Labor and Pensions Committee hearing in February: “There will be about 150 million people coming here to say, ‘Where is our damn money we paid? My Social Security money, 40 years of taxes, in (stock) on the market and probably worth $8 million to $10 million today, but the feds wasted it.'”
His remarks can be full of hyperbole. It’s hard to imagine that most Americans make $8 million in the stock market with the same amount paid into Social Security, for example. But he has a point to make. Social Security is in serious financial difficulty.
How Social Security reached the breaking point
With Social Security’s tangle, it’s easy to point the finger at federal government waste and mismanagement. But the heart of the problem cannot fit on a politician’s bumper sticker. In fact, the problems go back decades.
A major problem concerns life expectancy. When the Social Security Act of 1935 was passed, the average life expectancy in America was 59.9 years for men and 63.9 years for women, according to the University of California, Berkeley. Nearly 90 years later, people are living longer: 73.5 and 79.3 years for men and women, respectively, according to the Centers for Disease Control and Prevention. This is more than 20% more for both sexes, which could not have been anticipated when the program was designed.
Another consequence concerns rising costs. Even after Congress overhauled the coverage, financing, and benefit structure in 1983, the reserves that fund the program are expected to be insufficient as early as 2034. Taxpayers will continue to pay into the system, but at this point, Social Security benefits may no longer be paid. full.
So when Tuberville considers a rush to Washington, he may not be far away.
Learn more: ‘The Baby Boomer Collapse’: Robert Kiyosaki Warns Older Americans Will Be Crushed in ‘Biggest Bubble in History’ — 3 Shockproof Assets for Instant Insurance Now
The third rail of American politics
Speaking of the nation’s capital, you may be wondering why lawmakers haven’t acted, knowing that Social Security’s clock is ticking but still has a dozen years left. The answer is complicated.
For more than 40 years, Social Security has been called the “third rail of American politics.” Indeed, any effort to resolve this problem risks causing so much bickering and outcry among voters that it is seen as safer to simply throw out the funding later.
Raising taxes could be a quick and perhaps permanent solution. But aside from conservative lawmakers who oppose it, so do seniors — because what could save the program could well have an impact on their wallets. Andrew G. Biggs, a senior fellow at the American Enterprise Institute, called it a “game of chicken.”
And while the need for members of Congress to roll up their sleeves may seem imperative, these days it’s more a sign of political brawling than pragmatic problem solving.
Arguably, Congress has never been more divided and dysfunctional. This election year has already seen a number of blocked bills and close calls in terms of government shutdowns.
No wonder Tuberville posted on (formerly known as Twitter) on April 18: “Washington, DC is nothing more than an organized scam. »
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This article provides information only and should not be considered advice. It is provided without warranty of any kind.
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