No Social Security checks: Is Obama bluffing?
The president warns seniors that their benefits could dry up in early August if Democrats and Republicans don't strike a deal on the debt ceiling soon
If Congress doesn't raise the debt ceiling by Aug. 2, the U.S. Treasury will run out of cash to pay all of its bills, forcing the government to start making some huge cuts. President Obama said Tuesday that Social Security payments could be one of the casualties. "I cannot guarantee that those checks go out on Aug. 3 if we haven't resolved this issue," the president told CBS News. "There may simply not be the money in the coffers to do it." Furious conservatives immediately accused Obama of "fear-mongering," while liberals said it was high time Obama "threw down his ace in the hole" to kick-start stalled deficit talks. Is Obama bluffing?
Obama played the wrong card: I get why Obama wants to "scare retirees" to get his deal, says Andrew Biggs at the American Enterprise Institute. But he picked a weak "stick with which to beat congressional Republicans." Social Security is protected, with both its own dedicated tax and a trust fund holding $2.6 trillion in Treasury bonds. Even if the feds have to triage payments in the face of a cash crunch, under the 14th Amendment, Social Security is constitutionally in the "first tier of creditors, along with Wall Street and the Chinese." Retirees need not worry.
"Would Social Security benefits be cut if the debt limit is not increased?"
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Actually, the president is right: As conservatives used to point out, under Supreme Court precedent there's "no legally enforceable right to Social Security benefits," says David Frum at FrumForum. That means grandma is at "the back of the line" when the spending ax falls, along with the unemployed and "soldiers in the field." So ironically, while the GOP plays its "bizarre game of threat and counter-threat," Obama's actually "channeling 100 percent classic conservative theory." Retirees' checks may indeed be in jeopardy.
"Social Security checks are not guaranteed"
Social Security may be the least of our worries: The fight over whether Obama is fear-mongering here is almost beside the point, says Doug Mataconis at Outside the Beltway. If Congress is "stupid and irresponsible" enough to ignore the debt ceiling, the "immediate need to cut federal spending by 44 percent" would very quickly "suck more than a trillion dollars of liquidity out of the economy." Whether or not seniors miss a check, the private sector would take a huge hit.
"Even if there's no default, there will still be pain"
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
'Make legal immigration a more plausible option'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
LA-to-Las Vegas high-speed rail line breaks ground
Speed Read The railway will be ready as soon as 2028
By Peter Weber, The Week US Published
-
Israel's military intelligence chief resigns
Speed Read Maj. Gen. Aharon Haliva is the first leader to quit for failing to prevent the Hamas attack in October
By Justin Klawans, The Week US Published
-
Arizona court reinstates 1864 abortion ban
Speed Read The law makes all abortions illegal in the state except to save the mother's life
By Rafi Schwartz, The Week US Published
-
Trump, billions richer, is selling Bibles
Speed Read The former president is hawking a $60 "God Bless the USA Bible"
By Peter Weber, The Week US Published
-
The debate about Biden's age and mental fitness
In Depth Some critics argue Biden is too old to run again. Does the argument have merit?
By Grayson Quay Published
-
How would a second Trump presidency affect Britain?
Today's Big Question Re-election of Republican frontrunner could threaten UK security, warns former head of secret service
By Harriet Marsden, The Week UK Published
-
'Rwanda plan is less a deterrent and more a bluff'
Instant Opinion Opinion, comment and editorials of the day
By The Week UK Published
-
Henry Kissinger dies aged 100: a complicated legacy?
Talking Point Top US diplomat and Nobel Peace Prize winner remembered as both foreign policy genius and war criminal
By Harriet Marsden, The Week UK Last updated
-
Trump’s rhetoric: a shift to 'straight-up Nazi talk'
Why everyone's talking about Would-be president's sinister language is backed by an incendiary policy agenda, say commentators
By The Week UK Published
-
More covfefe: is the world ready for a second Donald Trump presidency?
Today's Big Question Republican's re-election would be a 'nightmare' scenario for Europe, Ukraine and the West
By Sorcha Bradley, The Week UK Published