SSDI Trust Fund could lack sufficient funds by 2016
Is SSDI trust fund insolvent?
As President Obama refuses to discuss entitlement reform and rejects the notion by leading Republicans that many social entitlement programs could become insolvent within a few years, evidence suggests that the shortfalls for the Social Security Disability Insurance SSDI Trust Fund could lack sufficient funds as early as 2016.
Jim Capretta of the Ethics and Public Policy Center acknowledges the shortfall of the SSDI Trust Fund could be in less than three years from now and given the president's rhetoric and his posture, it's quite clear that he has no intention of doing anything about it."
Why is the SSDI Trust Fund running out of money?
One of the main reasons the SSDI trust fund may run out of money is because of something no one seems to be discussing: the rapid increase of disability applicants and disability recipients, especially over the last several years as unemployment rates have risen. According to Fox News, The number of applications has almost doubled in the last 10 years, from 1.5 million a year in 2001 to more than 2.8 million a year in 2012.
Republicans and Democrats have always disagreed about what should be done about the nations entitlement programs including the SSDI Trust Fund, but some Democratic presidents have been less frustrating than others. According to Nicholas Eberstadt of the American Enterprise Institute, even President Clinton had a 'mend it, dont end it policy. Obama seems to be under the delusion that nothing needs to be mended.
In fact, as the Social Security Disability Insurance rolls have risen over the last several years and disability seems easier than ever to get (although the wait can be exhausting) the Federal Government has done nothing to help fund the ever growing rolls.
Republicans want to address entitlement reforms and the SSDI Trust Fund
Republicans on Capitol Hill remain frustrated as Democrats refuse to consider that reforms may be necessary. All discussions seem to degenerate into threats that grandma will starve to death, but both groups should be able to agree that no one is threatening to eliminate Medicare, and Medicaid, and Social Security.
Decreasing workforce less money put into the SSDI Trust Fund
Experts are not only concerned about the swelling disability rolls but also the ability of the future workforce to pay for the future liabilities. Because SSDI is funded through payroll taxes, sustaining the program depends on younger workers entering the workforce. What is now evident is that the declining birth rate may create a substantial problem as the country's large aging population collects more and more but there are less younger workers to support the system.
Democrats argue that the problem may be overstated, especially with new measures contained in Obama's health care law. According to Harry Reid, under that law, "savings from cutting wasteful spending and fraud will extend the solvency of the Medicare trust fund by an additional eight years.
But when has Government control of anything led to less waste, less fraud and increased savings? If you think the Federal Government can manage a behemoth new medical system efficiently just talk to the thousands of SSDI applicants who have been waiting for years to get their Social Security Disability Benefits.