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Top 5 Social Security myths

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My favorite among THESE MYTHS about Social Security is the theory that the system is going broke.

The truth: There is no Social Security crisis. By 2023, Social Security will have a $4.6 trillion surplus (yes, trillion with a ‘T’). It can pay out all scheduled benefits for the next quarter-century with no changes whatsoever.1 After 2037, it’ll still be able to pay out 75% of scheduled benefits–and again, that’s without any changes. The program started preparing for the Baby Boomers retirement decades ago.

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2 Comments

  1. Ted Biondo

    Pat,

    Pat, please read the following link. I used it in my Bernie Madoff Ponzi scheme post. I kidded about Social Security being where Bernie learned how to do what he did to all those people. Social Security is the biggest Ponzi scheme in the world and I’m not kidding.

    http://www.washingtontimes.com/news/2010/mar/16/social-security-ious-stashed-away-in-wva/

    You believe whatever you want from MoveOn.org but Social Security has no money left, sincerely. The government has been taking the money that wasn’t paid out in benefits since the 1980s. Social Security is nothing but IOUs locked up in drawers and the “T-bills as MoveOn calls them aren’t even negotiable bonds. Look it up, please. Interest is not paid to individuals like real T-bills. To pay for this debt, the government has to borrow the money plus interest to redeem these non-negotiable bonds to pay some of the future benefits.

    The bonds can only be redeemed by the government and they are $13T in debt. There is no money backing up any of these bonds except from the taxpayers, since the government has no money. We paid the Social Security taxes, the government distributed what it needed to and spent the rest, placing these non-negotiable bonds in West Virginia. It’s all in the link and it’s true.

    There is no full faith of the government, etc. etc. It’s the full faith of the taxpayers who have to pay the government to tear up these pieces of paper. Anyone who believes this MoveOn.org knows nothing about economics.

    So the taxpayers will have to pay for the Social Security benefits a second time plus now they will have to pay whatever interest is on the bonds.

    Even this year and next, the Social Security sytem has to pay out more than it takes in, then the system is ok until 2017 when it will permanently spend more than it takes in.

    I don’t know why MoveOn.org wants to mislead the elderly people in the country, but this is as clear as I can make it. They are lying. I have studied Social Security for over 25 years. It is true, however, that the program can pay out 75% of what it does now for years, but how many of the elderly can afford to take a 25% cut without trying to fix the system.

    If I sound a little frantic, I am. Social Security is in a crisis, and I don’t understand why anyone (moveon.org) would lie about it.

  2. expdoc

    “After 2037, it’ll still be able to pay out 75% of scheduled benefits–and again, that’s without any changes. ”

    Seems like a crisis to me.

    I have been paying into this system since I was 16 years old. Every year I get a fancy printout from the government telling me how much of a benefit I will be entitled to receive. In 2037 I will be 70 years old and I bet I never see one dime of the money I was promised. Anywhere outside of liberal think that would be called theft.

    Ted has it right, it is all a government authorized ponzi scheme and the current crop of politicians don’t care to fix it because they won’t be around to deal with the repurcussions of a failed system.

    Pathetic.

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