By admin 
For almost a century, Social Security has been the most successful anti-poverty program in American history. In California and across the country, it is the difference between a dignified retirement and economic catastrophe for millions of people.
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Social Security isn’t just a “safety net” for the elderly; it is California’s economic bedrock. In 2024, the program injected almost $138 billion into our state — more than the gross domestic product of California’s computer and electronics manufacturing sector, and more than double the economic output of the motion picture and television industry and agriculture.
For 6.5 million Californians (roughly 16% of the population), these monthly checks are a lifeline. They include not just retirees, but also children and disabled workers. The impact ripples far beyond the individuals who receive benefits.
In many rural and inland counties, Social Security acts as the community’s economic lifeblood, contributing as much as 11% of all income in parts of Northern California and the eastern Central Valley. When a retiree in Redding or Bakersfield spends their benefit check at the local grocery store or pharmacy, they aren’t just supporting themselves; they are supporting the jobs of their neighbors and the stability of their local business district.
Statewide, this spending supports over 730,000 jobs. Each dollar of Social Security benefit supports two dollars of economic output in California.
Despite Social Security’s vital role, we are often told that the program is “going bankrupt.” This is a fundamental misunderstanding. From its inception 91 years ago, Social Security has been a pay-as-you-go system funded by workers and employers. The U.S. has modest Social Security benefits compared to other rich countries, and the system has a dedicated revenue stream.
However, the system does face a long-term funding gap that — absent sensible reforms to boost revenues — could lead to a 22% benefit cut starting in 2034, according to the latest official projection. Congress has kicked the can down the road for long enough, and now is the time to act.
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The solution is not to throw retirees and young workers to the wolves of Wall Street by destroying the only source of secure retirement income for the majority of workers in the age of risky and highly unequal 401(k)s. Instead of entertaining cuts, including ill-conceived privatization proposals that would devastate our local economies and expand senior poverty, policymakers should consider reforms that actually have broad, bipartisan support.
A supermajority — 84% of Americans — supports protecting Social Security, enhancing benefits for the most vulnerable and raising revenues. For instance, the share of earned income taxed by Social Security has dropped from 90% in 1980 to just 83% today. Why? Because income growth has been overwhelmingly concentrated at the very top, voters want the highest earners to pay their fair share. They’re also willing to contribute another 1% of pay, matched by employers. These measures would put Social Security on solid footing for the next 70 years.
Sens. Bernie Moreno, R-Ohio, and Elizabeth Warren, D-Mass., have taken the first major step by proposing to lift the cap on Social Security taxes.
The clock is ticking. It’s time for our leaders in Washington to listen to the voters and strengthen the bedrock that holds our communities together.
Nari Rhee, Ph.D., is director of the Retirement Security Program at the UC Berkeley Labor Center. She served for two years as manager of research at the National Institute on Retirement Security.
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