The Social Security trust fund is broke

A recent letter writer asserted that the Social Security trust fund would grow to five times the estimated annual payout by the year 2015.

His sources are certainly questionable, as the Social Security Trustees report of 2013 indicates that the trust fund is completely broke and relies on income from payees into the system, interest, fund reimbursement from the government general fund and taxes in order to make annual payments.

This past year, during the debate about the budgetary credit limit, both President Obama and Treasury Secretary Geithner stated that if a credit limit deal was not reached, all Social Security payments were in jeopardy of not being met. If Social Security had a trust fund, how could the government credit limit impact annual payments?

If there were real assets in the fund, Social Security could mail the checks regardless of what Congress does about the credit limit. But there is not. In fact, the trust fund is completely empty, the funds borrowed over the years by the government and spent on other things.

The trustee report states that there will be an average negative difference of $75 billion for the years 2013-18 between the amount collected that necessary to pay annual benefits. There are bonds from the general fund with promises to pay back the money borrowed over the years, but the Social Security trust fund itself is bankrupt.

Steve Adams

Newnan



More Opinion

Rants, Raves & Really?!?

A look back at last week’s highs, lows and whatevers: RANT: Two people were killed in a single-engine plane crash near the Coweta and ... Read More


Georgia Says

The Augusta (Georgia) Chronicle on stronger borders: If America's border security is so weak to be breached by thousands of unaccompanied C ... Read More


Helping the homeless

Living in a big city, one of the more uncomfortable aspects of walking down a sidewalk is seeing the homeless begging for money. Many are po ... Read More


Uncovering the whole story

– The video working its way through social media, and also posted on our website at times-herald.com, clearly shows Newnan Police Depa ... Read More


Rants, Raves & Really?!?

A look back at last week’s highs, lows and whatevers: RANT: Billy Dedrick, a well-known and respected emergency room nurse at Piedmont ... Read More

Georgia Says

Morning News, Savannah, Georgia, on NFL punting on domestic violence: A player who smokes weed in the National Football League could be sus ... Read More