The future of Social Security.

Social Security and justice are inextricably linked. It can be said that society’s capacity for justice makes our Social Security system possible. Some might also argue that it is society’s capacity for injustice that makes Social Security necessary. For more than 50 years, Social Security has been a necessary and vital element in America’s social and economic well-being. It has provided economic security to generations of workers and their families, and it promises the same security to future generations. Yet, many of today’s workers wonder if the Government can, or will, keep that promise. More than ever before, young people are concerned about the future of Social Security. Many question whether a system that requires them to pay ever-increasing taxes will still be in place when it comes time to meet their needs. I believe that it will. It is true that just a few years ago there was cause for great concern. Beleaguered by high inflation and other economic woes, Social Security was in very serious financial shape-a condition that produced a variety of “gloom and doom” headlines which, unfortunately, still seem to be ingrained in the minds of many people. But since 1983, as a result of the efforts of President Reagan’s bipartisan commission on Social Security, and the amendments they proposed (see the box on page 61, there has been a dramatic turnaround. Today the system is operating on a solid financial basis. The soundness of the system is reflected in its trust fund operations. For example, last year Social Security took in approximately $217 billion in revenues while paying out only about $202 billion in benefits. That $15-billion margin, coupled with reserves already on hand, gives the system a $47-billion balance. For a system that has historically operated on a current cost, or pay-as-you-go basis, this is a substantial amount of money, even though it represents only 3 to 4 months’ worth of benefits. However, the trust fund reserves are expected to increase significantly over the next decade or so. This projection is important to keep in mind because these reserves will be necessary to meet the strain that will be put on the system when the baby boom generation reaches retirement age.