The easiest way for me to raise my blood pressure is to read articles detailing the “gloom and doomers” deliberately misleading and fact challenged attacks on America’s best kept promise.
Social Security is safe, stable and strong.
Future shortfalls (circa 2037) could be eliminated simply by lifting the current cap that limits FICA contributions to the first 108,000 dollars of annual income.
Not. Rocket. Science.
Given all that, my BP remained nice and mellow as I read this common sense defense of Social Security by Paul N. Van de Water. He is a Senior Fellow at the Center on Budget and Policy Priorities
Here are the facts. Social Security is a well-run, fiscally responsible program. People earn retirement, survivors, and disability benefits by making payroll tax contributions during their working years. Those taxes and other revenues are deposited in the Social Security trust funds, and all benefits and administrative expenses are paid out of the trust funds. The amount that Social Security can spend is limited by its payroll tax income plus the balance in the trust funds.
The Social Security trustees — the official body charged with evaluating the program’s long-term finances — project that Social Security can pay 100 percent of promised benefits through 2037 and about three-quarters of scheduled benefits after that, even if Congress makes no changes in the program. Relatively modest changes would put the program on a sound financial footing for 75 years and beyond.
Nonetheless, some critics are attempting to undermine confidence in Social Security with wild and blatantly false accusations. They allege that the trust funds have been “raided” or disparage the trust funds as “funny money” or mere “IOUs.” Some even label Social Security a “Ponzi scheme” after the notorious 1920s swindler Charles Ponzi. All of these claims are nonsense. …
Moreover, Social Security is the “polar opposite of a Ponzi scheme,” says the man who quite literally wrote the book about Ponzi’s famous scam, Boston University professor Mitchell Zuckoff.
The whole article is worth a read. The real issue is the explosion of health care costs. The ultimate answer lies in a single payer system.