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

Georgia Says

The Macon Telegraph on school testing: For years, teachers, education administrators, parents and other school personnel have cried foul ov ... Read More


Just the facts, ma’am

Dr. Walter J. Palmer, a Minnesota dentist, is now the most hated man in America. He has had to shut down his practice. His office building i ... Read More


Rants, Raves & Really?!?

A look back at last week’s highs, lows and whatevers: RANT: In an off-agenda item – meaning it was not on the Newnan City Counci ... Read More


Georgia Says

The Augusta (Georgia) Chronicle on proposed pastor's protection act: We agree with a University of Georgia scholar that a state "pastor's p ... Read More


Cyberbullying is real

It used to be school bullies would steal your lunch money or give you a wedgie on the playground. Sometimes, you’d have to find anothe ... Read More

Ending racism by blowing up a mountain

And so it begins. Earlier this week the Atlanta City Council voted 9-2 to ask Gov. Nathan Deal to consider making changes to the carvings on ... Read More