This is not a recent development. Since 1993, it has outspent defense appropriations. As a percentage of federal spending, Social Security’s expenditures have ranged from 0.22 percent during World War II to 24 percent in 2013.1 And Social Security costs are actually skyrocketing. Social Security has expanded from its original scope in 1935 to include workers’ dependents and survivors as well as the disabled. As a result, there are roughly 58 million people receiving benefits—more than double the number in 1970.2 As members of the ruling generation begin to retire, many more will be eligible for benefits. Unfortunately, there will not be nearly enough younger people working to pay the current rate of taxes to subsidize them. In 1940, there were 159 workers for every beneficiary. That ratio has dropped precipitously, from 16.5 in 1950, to 5.1 in 1960, to 3.7 in 1970 to slightly below 3 in 2010—and it is projected to get worse.3 There will only be 2.2 workers for every beneficiary in 2030.4 Social Security provides benefits through two major programs—Old Age and Survivors Insurance (OASI) and Disability Insurance (DI).5 Note the use of the word “insurance.”
