Social Security, the bedrock of safety net payments to 61 million Americans, could be interrupted by personnel cuts made by the Department of Government Efficiency (DOGE). It could create an economic catastrophe, at least for those who rely heavily on the funds.
The 61 million people who receive Social Security payments include retirees, people with disabilities, and their dependents and survivors. Last year, total annual costs were $1.6 trillion, making it the largest expense of the federal government.
The average payment to retirees, 52 million recipients, is just short of $2,000 a month. These payments make up about a third of the incomes of Americans who are over 65. The number is much higher for some. According to the Social Security Administration, “Among Social Security beneficiaries age 65 and older, 12% of men and 15% of women rely on Social Security for 90% or more of their income.”
According to CNBC, Social Security has not missed a payment to Americans in eight decades. Former commissioner and former Maryland governor Martin O’Malley told the TV channel, “Ultimately, you’re going to see the system collapse and an interruption of benefits. I believe you will see that within the next 30 to 90 days.” He suggested that recipients start to put aside money in case this happens. The primary reason for the possible interruption is that the Administration plans to cut 4,000 Social Security Administration jobs.
Social Security payments are already under siege. It is estimated that it will run out of money in 2035. SSA recently forecasts that “Currently, the Social Security Board of Trustees projects the program cost to rise by 2035 so that taxes will be enough to pay for only 75 percent of scheduled benefits.”
It is hard to imagine what the cuts would do to the US economy, but they are bound to be significant for tens of millions of people. Eventually, this will ripple across GDP.
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