Raise Social Security Taxes — and Cut Benefits: Allison Schrager

There are two processes that we cannot escape: aging and math. This applies not only to human beings but also to large government social-insurance programs.

Last week the Social Security Administration released its annual trustees report, and the news was not good. Starting in the fourth quarter of 2032, one quarter earlier than previously projected, Social Security is set to pay only 78% of benefits. Such a broad cut is unlikely — Social Security is too popular, and the elderly rely on it too much. Even missing a cost-of-living increase is unthinkable. So something else has to happen.

The ...