Social Security checks could stop being sent because of what coronavirus caused
Coronavirus has forced the U.S. economy to a screeching halt.
Because of this, there have been series consequences.
And now Social Security checks could stop being sent because of this.
Millions of Senior Citizens rely on Social Security to survive.
But due to decades of irresponsible spending, the system is on the brink of falling apart.
President Trump has made great strides towards slowing this, but due to both Democrats and Republicans dipping into the Social Security fund for many years, it is an uphill battle to save it.
And now, with coronavirus forcing nationwide lockdowns of the economy, things are becoming worse than ever before.
A new estimate now shows that the Social Security system could become insolvent by the end of the decade.
Previously, it was estimated that the program would run out of money by 2035.
But now, with coronavirus putting a strain on the U.S. economy, that model shows the system collapsing before 2030.
This is caused by tens of millions of workers becoming suddenly unemployed, and a flood of older Americans who lost their jobs beginning to draw benefits as soon as they’re eligible.
Serious work needs to be done to save the program, which will likely require the ultimate phasing out of the program over time.
But without that work, the system will collapse entirely, removing the sole income stream for millions of American Seniors.
Rep. Steve Womack, the ranking Republican on the House Budget Committee, likened the coming crunch to bailing “water from a sinking boat when you’ve got alligators nipping at you. And the alligators are Covid-19.”
“This is a train wreck that’s going to happen and you can see it coming,” he continued.
Social Security has previously faced serious strain during times of economic hardship.
Most notable was during the recession a decade ago, which resulted in a 5 percent bump in eligible adults claiming Social Security six months early.
The government predicted that the fund would run out of money in 2037 at the time, which was four years sooner than predicted before the recession.
This shows just how volatile the system is.
Younger generations are already accepting the fact that the safety net they are forced to pay into now will almost certainly no longer exist when they reach the age to receive it.
But now, many who paid into it for their entire lives, who are receiving benefits now, have to worry that those checks may stop flowing in one day soon.