The End of Obamanomics: Social Security to Go Into Deficit 2010-2011, and Then Permanently in 2017

...which means Social Security will begin drawing on general-tax revenues starting next year, increasing the budget deficit even further.

What a perfect time to expand government spending to levels hitherto undreamed by man.

A Hot Air exclusive, Captain Ed says, snagging the CBO's calculations.

Harry Reid said this wouldn't happen for 50 years. Orszag claimed we were fine until 2019.

This demonstrates nothing better than the poor and politically calculated analyses that came out of the CBO during Peter Orszag’s tenure at the Congressional agency. Democrats wanted analyses that allowed them to ignore the problems in Social Security, and Orszag was happy to supply them. Douglas Elmendorf has had to right the ship at CBO while Orszag continues to blow his predictions at OMB, most notably in overall deficit projections, which Orszag had to admit were off by more than 40% and $2.2 trillion over the next ten years.

And now it's next year, and the year after that, with the system just slightly covering expenses for several years after that, and then back into deficits.

Forever.

Or, rather, for about 40 years. Once the huge cohort of Baby Boomers has shuffled off their mortal coils, we'll be fine again.

UPDATE FROM LAURAW BELOW THE FOLD:

Anybody remember this SOTU Address? Look at the glee on the Democrats' faces as they applaud.

posted by Ace at 11:11 AM

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