For decades, Americans have been told that Social Security is teetering on the brink. Warnings about a looming mismatch between the program’s revenues and expenses have become part of the Social Security narrative. As a result, it seems like the system is in constant need of reform.
It’s a compelling story, but it’s not the full picture.
To be clear, some concerns are grounded in reality. Yes, people are living longer. Yes, we’re having fewer children. These demographic shifts naturally strain any retirement system, and they’re not unique to the United States. Countries around the world are grappling with similar pressures.
But here’s the part we often overlook: Social Security has delivered four decades of predictable and stable costs and benefits. This is a remarkable achievement in a constantly evolving economy. Our Social Security contribution rates today are based on calculations that shaped the 1983 reforms.