CounterPunch Exclusives

CounterPunch Exclusives

The Social Security Shortfall and Trump’s Big Military Budget

A DDG-51 destroyer ship on the water. U.S. Navy photo by Journalist 2nd Class Patrick Reilly.

The release of the 2026 Social Security Trustees Report got the usual suspects (a.k.a. “very serious people”) genuflecting about the large projected shortfall. As of 2034, the program is projected to be unable to pay full benefits. This would mean a 22 percent cut in benefits if no additional revenue is added.

There are three points worth making here.

1. As an economic matter, the projected depletion of the trust fund and resulting shortfall in the program means nothing; 2. The main reason for the projected shortfall is the upward redistribution of income over the last half-century; 3. The projected shortfall is far less money than the increase in military spending that Donald Trump is requesting for his 2027 budget.

1. As an economic matter, the projected depletion of the trust fund and resulting shortfall in the program means nothing;

2. The main reason for the projected shortfall is the upward redistribution of income over the last half-century;

3. The projected shortfall is far less money than the increase in military spending that Donald Trump is requesting for his 2027 budget.

Trust Fund Accounting 

On the first point, the spending to repay the bonds held from the trust fund in 2033 comes from the Treasury. Its impact on the economy would be........

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