On This Date, 1977

On this day…, May 9, 1977, President Jimmy Carter signed a bill that was to save Social Security. In 1972, a bill was passed that allowed Social Security benefits to increase at twice the annual rate of inflation. This did not happen because of political promises, but it happened as a result of a mathematical error. The bill that President Carter signed into law would have reduced the benefit increases to match the rate of inflation.

What is most notable is President Carter’s quote:

"Now this legislation will guarantee that from 1980 to the year 2030, the social
Security funds will be sound”[1]

Today, even the Social Security Administration states that the Social Security fund will not be able to meet all of its obligations by 2018 (only 11 years away).

Just remember that quote the next time a politician promises to ‘save’ social security.


[1] Sylvester J. Schieber and John. B. Shoven, The Real Deal: the History and Future of Social Security. (New Haven and London: Yale University Press, 1999), p. 182