Is Social Security Bankrupt?

There's a myth that Social Security's bankrupt. The truth is that there's a trust fund that won't be exhausted until 2041. Now I know that the trust fund has government bonds in it funded by current tax dollars, not stocks with value but the thing is, why's this Social Security's fault. I'll come back to this.

For years politicians have been robbing the system, and this is galling, charging us interest on the money stolen. And after robbing the trust fund, putting interest bearing bonds in the fund and then spending the money on a government program, the government then continued as usual, deaf to anyone who talked or wrote to them and complained about it.

But this doesn't mean that a private account or an account with stocks should have been done either. Let me explain. If the United States. in 1987, when the fraud started, had bought stock for the trust fund, what's that called. Government owning stock is owning businesses, the word is communism.

And don't think the government would have been a kind task master. No matter the safeguard, the government would have started regulating companies for one cause. then another cause and then another until businesses would have been completely subjugated to every regulation imaginable, from greenhouse gases causing global warming directives to you name it.

So what should have been done for Social Security? Why nothing. President Franklin Roosevelt said “In politics, nothing happens by accident, if it happens, you can bet it was planned.” Social Security was never in danger. I believe like the President there are no accidents in politics. This was an inside job.”

Politicians for years had a fortune to rob from to finance programs for re-election. Bonds were not a real idea because they're collected on the year they're needed just like current taxes. Except the politicians got to raise taxes with this scheme too. And now they feel that the people will be stupid enough to accept a new solution, which is to cut Social Security. But the program wasn't in danger then or now.

At a point the baby boomers will die off, by 2025 over half will be dead. After they die off, the program will eventually be filled with surpluses, enough to pay off any borrowed money if the government wishes.

The bonds in the trust are backed by the full faith and credit of the United States. Social Security, therefore, doesn't have a money problem, the Congress just doesn't want to honor the bonds because it's less they can spend someplace else to get re-elected. In other words, Social Security's fine since, after a point even with an exhausted trust fund, it will be overflowing with cash again.

But the government isn't, so they want to cut Social Security. And I for one say, since we can't sue the past politicians for fiscal misfeasance that's illegal in private business, the current politicians should face that trial at the ballot box if Social Security isn't left alone. Cut another sacred cow, and the Congress won't have to lie twice to Baby Boomers or punish the young workers today.

Cutting Social Security is a scheme so politicians of the present don't have to suffer for the sins of the politicians of the past. But they want us to. Many politicians who are elected to the national government are thinking the same as they do in Europe which is mostly fascist now. Older folks aren't really people, they're used gum. They're wrong.

By

Jeffrey Ruzicka

Jeffrey Ruzicka is a retired executive of a small company that specializes in industrial water treatment. He lives happily with his wife in Western Pennsylvania and is a contributing writer to FinancialJobBank, FinancialJobBankBlog and Nexxt.