The Money Is There! The Government Just Doesn't Want to Pay It!
First, SSA is NOT broke. IT HAS A POSITIVE BALANCE ON THE BOOKS. In fact, the trust funds hold more U.S. debt than China and other privately held treasuries together. In fact, SS is one of the largest holders of Federal debt.
Second, SSA Trust Fund balances are invested in secure government bonds ant the total portfolio is earning around 5.3%. (The average for all national debt is about 2.76%.) Contrary to most impressions, SS is a good deal and is essential for those who can not amass a large personal wealth to support them in retirement.
Third, The problem is NOT the Old-Age Survivors Benefits and Disability insurance. The major problem and threat is from the separate fund for Medicare A, B, and D. Politicians confuse the public debate by combining these 4 separate trusts into one issue.
Fourth, If the government fails to fund SSA needs then the government is in DEFAULT!
Fifth, Of all government programs to stimulate the economy Social Security translates directly into the economy usually within the month -unlike tax credits and subsides.
Sixth, Think of Social Security not as a "tax" but as an "annuity investment." Most of us have seen the TV ads about "Guaranteed Income for Life!" If you don't think Social Security is a great deal then try pricing out your own annuity - with disability insurance, spouse benefits, etc.
While I do agree that the government MUST cut the debt but SSA is NOT the problem. See: http://www.remappingdebate.org/article/stop-crying-fire-social-security-theater
From the CBO: http://www.cbo.gov/doc.cfm?index=11580 SSA will not be able to pay beneficiaries by, maybe, 2039.
"Social Security is the federal government's
largest single program, and as the
"Some politicians claim the
securities held by federal programs such as Social Security and Medicare are "worthless IOUs" but they are wrong. An IOU is
just another way of saying bond. These bonds are backed by the full faith and
credit of the
Want to see a list of sovereign states by public debt? (Older data - U.S. debt is more than 100% of GNP.) http://en.wikipedia.org/wiki/List_of_countries_by_public_debt
Want to see a list of countries and their external debt including private debt as a % of GNP? http://en.wikipedia.org/wiki/List_of_countries_by_external_debt We are one of the highest % debt among major nations!
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Please tell your political leadership, and others as needed, to stop with the B.S. and posturing. We deserve better!
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Trust Fund Activity:
Status of Social Security and Medicare Projections showing the effect of Old Age Survivor Insurance, Disability Ins, Medicare A, B & D together. Lots of Info - See "Summary."