Social Security payments already collapsed in the 1980s, and it could happen again now
With much fear surrounding Trump and Musk’s decisions on Social Security, here’s what happened the last time it crashed.
With the recent election of Donald Trump and the arrival of his (unelected) little helper in Elon Musk, there has been much debate and even more fear surrounding the future of social security payments in the United States.
For years, social security benefits have helped those most in need across the country, providing a small but crucial bump in their finances to be able to survive in the ever-changing financial climate of the country, which has not been kind to the lowest earners on the ladder.
And now, the worrying prospect of social security payments being cut by Musk, the man who called them ‘entitlements’, is very real. In the face of this potentially deadly idea, we decided to take a look back to the 1980s, when the same situation occurred.
Back in 1983, under TV star turned Republican President (sound familiar?) Ronald Reagan, a string of Social Security Amendments were signed into law. These changes raised the retirement age for future beneficiaries from 65 to 67, delaying the cost-of-living adjustments that year by six months, as well as putting in place a taxation of benefits that could rise up to 50%.
Last night I stood up for those who need Medicaid, Medicare, and Social Security. Democrats will never abandon the fight to make sure every American has a safe, healthy, and financially secure life. #ISaidWhatISaid pic.twitter.com/xbKArzeLp1
— Congressman Al Green (@RepAlGreen) March 6, 2025
Congress ‘kicking social security down the road’
John Svahn was the Social Security Commissioner when this happened. He told Yahoo that the country “got the financial rewards of raising the retirement age”, putting money back in the pot for payments to be made.
The other thing that was very popular", he added, “was we put federal employees into the system in 1983, and that included members of Congress. It was a huge bill and an awful lot of other provisions to it.”
Svahn said that while debating the changes “a bunch of us gave a lot of blood”, calling the decisions “a real tough slog”.
On why there has been no pushback at the fact that the reserves are set to run out of money, Svahn said that “Congress only acts when it is critical. Any tricks to kick it down the road a bit and long enough, so it’s “not my problem anymore.”
Rep. Richard Neal: The average benefit is $24,000. That means half the people who get Social Security get less than $24,000 a year.
— Social Security Works (@SSWorks) March 5, 2025
That's less than 400 bucks a week.
So for me, not a dime to be cut from Social Security, not a dime. pic.twitter.com/vRYyTXuNUZ
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He also, in rather grim fashion, added that “there is nothing you can do” when the problem becomes so dire. On the situation today with Musk’s DOGE threatening to cut the money, he warned that “they need most right now is for this irresponsible talk going on around Washington right now to cease and for Congress to sit down, say we are going to have a problem coming up and to figure out what they’re going to do to solve the problem... I don’t see that happening."
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