How Much Social Security Adds to the Budget – Updated
Ever wonder how much Social Security really adds to our nation’s budget?
You might not believe it but it doesn’t add a single cent. Not one red cent.
So, you must be asking yourself, well, why are the Republicans always saying we need to cut it or privatize it. The answer has nothing to do with the budget. Let me explain.
The trust fund for Social security is growing in the trillions of dollars. At first Social Security was paid as it was used. Each generation paid for it’s grandparents. But, as the baby-boomers hit the work force, it was obvious that something was necessary to have money for them when they retire as there would be fewer workers to pay for their generation.
That is why Reagan doubled the tax on the middle class. That’s another truth that you won’t find in the text books but it’s true. The Baby-boomer generation had to pay for their grandparents and for their own retirement. This doubling of your and my taxes has created a huge surplus in the Social Security trust fund. It’s over three trillion dollars today and is expected to be $4.7 trillion in ten years.
After that, the baby-boomers will be drawing down on the trust fund until they’re all gone and so is the trust fund. At that time, we can go back to each generation paying for their grandparents. In other words, we’ll go back to paying as we go.
The Republicans try to scare you by lying about how the trust fund is going broke so Social Security is going broke. It’s just a lie. Get used to them.
Our Social Security trust fund is invested in US government bonds to collect a guaranteed return. The Republicans want you to have to give that money to the bankers, you know, the ones who pay themselves billion dollar bonuses while the investments crash and burn. It doesn’t work so well for 401Ks now does it?
The Republican politicians don’t care if you starve to death after losing your privatized Social Security in the stock market, at least their big banker johns will continue to fund their elections.
Social Security is not going broke. It’s just a right-wing lie like so many others.
Update: Correction – at this date, the trust fund is just under three trillion dollars, not over.