Social Security, a promise or a problem?

English: Scanned image of author's US Social S...

English: Scanned image of author’s US Social Security card. (Photo credit: Wikipedia)

There are two ways of looking at Social Security. One way is to say no problem exists as the trust fund has roughly $2.5 trillion in assets. The other way is to say that the trust fund is broke because the Federal government borrowed the money and spent it, replacing the tax receipts with government IOUs. The people who claim that Social Security is a problem are those who do favor reneging on the promise of a retirement income for seniors because they don’t want to be taxed to redeem the IOUs.

As I used to say to my younger co-workers when we argued about Social Security: If you believe it will still be there when you retire, it will be. If you don’t so believe, it won’t be. That is because you will vote your beliefs and the candidates you elect will either fix the problem or vote to eliminate the program.

4 thoughts on “Social Security, a promise or a problem?

  1. The biggest problem with Social Security is that it’s trust fund is just too attractive a profit opportunity to pass up by financial services companies. At about 1% management fee which is about average for a 401k fund, that could have been a $25 billion a year industry.

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