Social Security Financing Problem Disputed

David Francis reports in his Christian Science Monitor column that the annual report of the Social Security trustees may seriously overstate Social Security's funding problems. He relies upon David Langer, a New York actuary, who claims that there is actually no problem. The issue is how one predicts future economic growth. Very slow economic growth was assumed in the prediction that the Social Security trust funds will run out of money in 2040. According to the column, the slow growth assumptions were choosen deliberately to portray Social Security's situation in a bad light. Actually, no one can accurately predict economic growth in the 75 year period over which Social Security trust fund predictions are made. In the past, the economic growth projections used by Social Security's actuaries were too low. Assume more vigorous growth and there is little or no problem.