Social Security Fixes Could Balance Federal Budget by 2051, Experts Say

Budget experts say fixing Social Security and Medicare could solve America's long-term deficit problem. The Peter G. Peterson Foundation found that without bailouts for these two programs, the federal budget would be balanced over the next 30 years.

By 2051, Social Security and Medicare are projected to run massive annual deficits that require government bailouts. These bailouts, plus the interest costs on borrowing to pay for them, drive most of the country's long-term budget problems.

Some economists argue Social Security isn't the main cause of today's deficit. The Economic Policy Institute notes that critics want Social Security cuts mainly to "send a message" to bond markets, not because the program directly causes current budget problems.

The debate highlights a key question: Should policymakers reform Social Security now to prevent future crises, or focus on other budget issues? Supporters of reform say early action would restore confidence in America's most important social program and prevent more painful cuts later.

Social Security trustees have warned the program's trust fund could be depleted in the 2030s without changes. That could trigger automatic benefit cuts of about 20% for all recipients.