I keep hearing this argument, including on the front page of my home town paper today: there’s something risky, fishy, corrupt, dark, and secret about the $2.6 trillion Social Security trust fund.
No, there isn’t. It’s a saving mechanism that was intentionally created years ago to prepare for the increase in costs to the retirement system due to the predictable aging of the baby boom. But instead, we read:
“Social Security is sucking money out of the Treasury. This year, it will add a projected $46 billion to the nation’s budget problems, according to projections by system trustees…
…unless Congress acts, its finances will continue to deteriorate as the rising tide of baby boomers begins claiming benefits. The $2.6 trillion Social Security trust fund will provide little relief. The government has borrowed every cent and now must raise taxes, cut spending or borrow more heavily from outside investors to keep benefit checks flowing.”
10 years of escalating debt have crippled the government’s ability to repay the trust fund.”