The disingenuous / lazy media and politicians are at it again with Social Security “trust fund” myth:
WASHINGTON – Sick and getting sicker, Social Security will run at a deficit this year and keep on running in the red until its trust funds are drained by about 2037, congressional budget experts said Wednesday in bleaker-than-previous estimates.
The massive retirement program has been suffering from the effects of the struggling economy for several years. It first went into deficit last year but had been projected to post surpluses for a few more years before permanently slipping into the red in 2016
This year alone, Social Security will pay out $45 billion more in retirement, disability and survivors’ benefits than it collects in payroll taxes, the nonpartisan Congressional Budget Office said. That figure nearly triples — to $130 billion — when the new one-year cut in payroll taxes is included.
But there is no trust fund. No. Trust. Fund. As I’ve noted before, anyone claiming there is such a thing is ignorant and/or trying to deceive you.
The government does not have the capability to set aside funds in a bank account like we do. When the Social Security funds come in they are spent on Social Security, or, as they have done for decades, on other spending projects they didn’t want to raise taxes to fund. Decades of dishonesty and financial mismanagement by both parties are becoming more visible.
If Social Security taxes stopped today there wouldn’t be a penny saved to meet the commitments the government made. It is the world’s largest Ponzi scheme.
If some of these Social Security funds went to private investments that you could control then that would limit how much the politicians could abuse. But they don’t want to lose control, so they play on your fears that something bad will happen.
Yes, the market could crash and you could lose your investments. It is a risky world. But think about this: Whether your private account crashed or not it isn’t like the government is saving our taxes today to pay out tomorrow. Either way the payouts they will make 10 years from now will come from taxes paid 10 years from now.
Simply put, we can’t lose by having at least part of current contributions devoted to private accounts. The politicians will lose because they’ll have to find a way to fund current spending, or not spend the money at all.
Don’t let fear-mongering by politicians fool you. The system has been broken for a long time. Democrats didn’t want you to be informed and Republicans didn’t try hard enough to inform you. But it isn’t that complicated.