DOGE and Congress Must Confront Social Security Reform to Curb Federal Spending

The Department of Government Efficiency (DOGE) has made strides in cutting federal waste, but if it’s serious about reining in America’s ballooning deficit, it must take on the biggest government expenditure: Social Security.

With the Old-Age and Survivors Insurance (OASI) Trust Fund set to run out by 2033, leaving only enough revenue to cover 79% of scheduled benefits, tough decisions lie ahead. Without reform, either taxes must increase, other federal programs must be gutted, or the U.S. government risks defaulting on its debt.

The Fiscal Reality: Social Security’s Looming Crisis

• Social Security accounts for over 20% of federal spending.
• Combined with Medicare and Medicaid, entitlement programs consume over 50% of the budget.
• The U.S. ran a $1.8 trillion deficit in 2024, projected to reach $2.7 trillion by 2035.
• National debt exceeds $36 trillion, with no slowdown in sight.

Americans overwhelmingly oppose tax hikes—two-thirds say they already pay too much—yet also demand more Social Security spending. But with a shrinking workforce supporting a growing retiree population, the math simply doesn’t add up.

Why Economic Growth Alone Won’t Fix Social Security

Some argue that economic growth can rescue Social Security, but this is a myth. As wages rise, so do Social Security benefits, keeping the program’s financial shortfall intact. Furthermore, increased life expectancy means fewer workers must support more retirees, exacerbating the problem.

Key Reforms to Keep Social Security Solvent

1. Raise the Retirement Age

• Current early retirement age: 62 → Increase to 65
• Full retirement age: 67 → Increase to 70
• When Social Security was introduced in 1935, life expectancy was below 65. Today, Americans live much longer and healthier, making an age increase reasonable.

2. Means-Testing Benefits

• Older Americans (65+) have 3x the net worth of younger workers (35-44).
• Taxing struggling younger workers to pay benefits to wealthy retirees makes no sense.
• Social Security should return to its original purpose: supporting low-income retirees, not serving as a universal pension.

3. Adjust Cost-of-Living Increases

• Switching to the chained CPI for inflation adjustments would more accurately reflect spending patterns, saving billions.

A Better Alternative: Private Retirement Savings

Instead of relying solely on Social Security, Americans could benefit more from private investments. Studies show that over 99% of Americans would earn better returns from S&P 500 investments than from Social Security.

A reformed Social Security system could shift toward lower payroll taxes, allowing workers to invest in personal retirement accounts with higher returns.

Fixing Social Security Before It’s Too Late

Elon Musk warned that America is going bankrupt quickly, yet politicians continue “whistling past the graveyard” on Social Security. Without reform, the government will be forced to slash benefits or inflate the dollar into worthlessness.

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