During the February 1 edition of NBC's Meet the Press, host David Gregory falsely asserted that “Social Security is about to go -- pay out more than it's taking in by 2010.” In fact, the 2008 Social Security trustees' report estimated that "[u]nder the intermediate assumptions, the OASDI [Old Age Survivors and Disability Insurance] cost rate is projected to increase rapidly and first exceed the income rate in 2017," not in 2010 as Gregory claimed. Moreover, as Media Matters for America has noted, the 2008 Social Security trustees' report forecasts that, in the absence of a change in the law, Social Security will be able to pay full benefits until 2041, after which it will be able to cover between 78 and 75 percent of scheduled benefits through the end of the 75-year period the report's long-range projection covered.
This is not the first time NBC has perpetuated myths about Social Security. As Media Matters documented, during the October 2, 2008, edition of NBC's Nightly News, NBC News correspondent John Yang falsely asserted: “At current rates, analysts say Social Security will run out of money by 2041.” Additionally, on the September 18, 2008, edition of MSNBC Live, correspondent David Shuster stated that Social Security “will run out of money unless we make some major changes, at least in the next several years.”
From the February 1 edition of NBC's Meet the Press:
MARK ZANDI (Moody's Economy.com chief economist): Let me make a point about the debt. It's 40 percent of GDP now. If the projections are right, we get to 60, maybe 70 percent of GDP, which is high, but it's manageable. In our history, we've been higher, as you pointed out. And moreover, it's very consistent with other countries and their debt loads. And more -- and just as important, investors understand this. They know this and they're still buying our debt, and interest rates are still very, very low. So we need to take this opportunity and be very aggressive and use the resources that we have at our disposal.
ERIN BURNETT (CNBC anchor): It's true. But you look at 67 percent, that's where Japan was when they did their first stimulus package back in 1989. And then they ended up going obviously significantly higher than that, which is why it all comes down to -- you're right, it's manageable, other countries are there, but if you don't get -- if you're not spending that money well, you're going to have to keep spending more and more and more. So it's a significant point.
GREGORY: And in terms of government spending, you have that if it's at 70 percent, we're not factoring in some of these unfunded entitlement programs like Medicare, the fact that Social Security is about to go -- pay out more than it's taking in by 2010. So there are some real concerns down the road.
ZANDI: Well, here's the other thing: If we don't do anything, the deficit's going to rise anyway. We're going to have a much worse recession. Tax revenues are going to fall even more significantly. Government spending will rise because of the income support program, so it could be that debt would be even higher.
