Observations on life

No matter what, people love to ignore facts. Here’s the truth about who stole the Social Security money

Oh my, nobody stole the Social Security Trust money.

The fact that the Trust of $2.8 trillion is held in special US Treasury Bonds (paying interest to the trust) has nothing to do with the fiscal state of Social Security, nothing. 

And, there was not a COLA for 2017, not because there was no money, but because the inflation formula did not cause one to happen.

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4 replies »

  1. Ok..Im totally confused about all the reports out there about Social Security…I had read that there would be a small COLA in 2018..is this still correct?? I wish I could have waited to take Social Security but due to financial issues..I had to put in for it at age 62.. Im now 65..I hope that they dont do what all the reports Ive read ..about destroying Social Security and Medicare..Why dont they try doing with less in the pockets..alot of people depend on Social Security as a help in being able to get what is needed…example..food

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    • Right now it looks like a 1.4% COLA for 2018, but that could change between now and the end of September when the final calculation is done, but for many people it won’t mean much because they still has to be a catch up on paying the correct Medicare premium. I wouldn’t worry about Social Security. Nobody is going to destroy it and nobody is going to change it for people like us already collecting benefits.

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  2. The bottom line is that Social Security was sold to generations of Americans as a “contractual” relationship between the taxpayers and their government, then more recently, between generations of taxpayers. But, all you really have is an entitlement – where benefits ostensibly funded by taxes actually beat almost no relationship to those taxes … Congress can and does change benefits whenever and however they please, and Congress borrows money from the trust putting IOU’s (bonds) into the trusts, as they start the draw down.

    Certainly, few know the technical details, but no one handed anyone a detailed contract when they started paying “contributions”. And even if they had handed me a contract when I started paying in 1968, today it would represent lie after lie in terms of what was “promised” – the status quo of June 1968, compared to the reality I face as I turn 65 in just over a month.

    Unlike most others, I knew what was happening at every turn, the Nixon crap in 1972, Carter in 1977, Reagan in 1983 and failures by Clinton and Bush II in reforming the system, followed by Obama and Trump hollow promises that we can continue or improve in the status quo.

    What do you recommend we do, sir?

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    • Everyone who has studied SS funding knows that almost everyone who reaches 62 or beyond and starts getting benefits, gets back way more than was ever paid in taxes.
      The government will do nothing to fix the coming shortage. They will just borrow the money to pay the benefits, making the money you get worth less and less every year.

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