Social Security deficit slides-worst in a generation-Hey, lets mess health care too After seeing what a good job the gov't did with Social Security, they want the people to believe that they can do a better job at health care Tip: HotAir Steve at No Runny Eggs has kept a close eye on the financial statements from the Social Security administration, and he has good reason to do so. Earlier this year, we began to see monthly deficits from SSA, a result of income drops as the recession and unemployment deepened. However, with the Obama administration arguing that the economy has already begun its recovery, the deficits at SSA have hit their deepest ever: The Social Security Administrations Office of the Chief Actuary finally got around to posting the detailed November numbers for Social Security, and things have only gotten worse: The combined OASDI (Old-Age Survivors and Disability Insurance) Trust Funds posted a $5.858 billion primary (cash, non-interest) deficit for November, the worst monthly performance since monthly records began in 1987. The 12-month OASDI primary surplus was only $9.598 billion, also the worst 12-month performance since monthly records began. Since there wont be an cost-of-living increase in Social Security benefits, the combined funds may yet avoid a 12-month primary deficit in 2010 by the skin of its teeth. However, that is dependent on an improvement in the wage situation, and specifically an improvement in the job prospects of those between 62 and 67 years old. Somehow I dont see the trend of older and higher-earning workers losing their jobs disproportionately reversing. Recall that Peter Orszag, now Director of OMB, predicted as CBO Director in August 2008 that no one needed to worry about SSA until 2019: Today, Social Securitys revenues each year are greater than its outlays, but as the baby-boom generation (people born between 1946 and 1964) continues to age, growth in the number of Social Security beneficiaries will accelerate, and outlays will grow substantially faster than revenues. CBO projects that outlays will first exceed revenues in 2019 and that the Social Security trust funds will be exhausted in 2049.2 If the law remains unchanged, the Social Security Administration (SSA) will then no longer have the legal authority to pay full benefits. Orszag wasnt even right in the month he made the prediction. Democrats used this analysis to paint Republicans demanding Social Security reform as hysterics who wanted to attack retiree benefits and suck up to Wall Street. Heres the cash flow for the past two years as reported by SSA.