The Congressional Budget Office now projects that Social Security's $2.8 trillion trust fund will run dry in 2029 — less than a decade before the end of the next president's first term. At that point, an automatic benefit cut of 28% would take effect.
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Social Security's chief actuary reports that the social safety net will run a deficit for 2010.
That's 9 years earlier than expected! The 2010 shortfall is expected to be -$29 billion.
Peter Orszag, now director of the Office of Management and Budget, predicted as director of the Congressional Budget Office in August 2008 that no one need worry about Social Security.
We were told: "CBO projects that outlays will first exceed revenues in 2019 and that the Social Security trust funds will be exhausted in 2049."
Doesn't exactly inspire confidence in the estimating prowess of the CBO or the OMB , does it?
Is a new era of fiscal irresponsibility inevitable?
President Obama's fiscal 2011 budget will generate nearly +$10 trillion in cumulative budget deficits over the next 10 years, +$1.2 trillion more than the administration projected, and raise the federal debt to 90% of the nation's economic output by 2020, the Congressional Budget Office (CBO) reported on Thursday March 25th.
