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Social Security deficit shrinks, U.S. debt impact rises, Andrew Biggs notes

Social Security deficit shrinks, U.S. debt impact rises, Andrew Biggs notes
Social Security deficit adds to U.S. debt

Andrew Biggs reports that the Congressional Budget Office has found Social Security's long-term deficit has been reduced.

However, he points out that despite the shrinking deficit, Social Security is expected to contribute more to the federal debt moving forward.

Earlier, Andrew Biggs analyzed research indicating that benefit-reduction reforms to Social Security could raise U.S. GDP and lower the debt ratio. He has also compared two major Social Security proposals, finding they deliver equal effects on solvency but differ in their impact on the debt-to-GDP ratio. These findings add context to ongoing discussions about Social Security’s role in federal finances.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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