The “Social Security Trust Fund” is flush indeed. It is full to overflowing with IOU’s from the Federal Gov’t which are worth exactly nothing. Congress has always borrowed all surplus from this fund and scrupulously replaced them with Official IOU’s.
If any body is curious why our “savings” are not available it is this. Social Security was set-up as a “pay-as-you-go” program. In other words, it is to pay current retiree’s from the current income. A shrewd FDR foresaw years of an expanding population who would fund current federal spending through this new tax.
And, fund programs it did…$2.6 trillion of them; many of these funds were spent back in the old low-inflation times. But, like all good freebies…the banker (us) is at the door demanding repayment.
Uncle Sam with his pockets inside out is declaring he has no funds today but he will gladly repay the fund tomorrow (with interest but no penalties). Whoever believes this latest promise probably has voted for the long line of political hacks going to Washington all these past years who stole the cash.
But these selfsame hacks seem to have outsmarted the American voter yet again!