Social Security, with its ‘trust fund’ filled with Treasury IOUs, is in serious fiscal trouble, but you wouldn’t guess it from stories by the mainstream news media. Reporters and columnists have downplayed the program’s budget shortfall and claimed that fixing the broken system would be a “snap.”
———————————–—–—————————————————–
[From the Business & Media Institute, original article here]
Social Security with its ‘trust fund’ of IOUs is in serious fiscal trouble, but you wouldn’t guess it from the mainstream news media.
This is a historic year for the largest government program: Social Security, which turns 75 in just a few days. The program is also running a deficit for the first time since 1983, and ahead of estimates.
Initially, Social Security was created to provide supplemental income to elderly and disabled people who could not work, and was signed into law by President Franklin D. Roosevelt Aug. 14, 1935.
Social Security is in the red six years earlier than forecasted, and for the first time since 1983 (the last time the program was “fixed”). Downplaying the significance of the problem, The New York Times reported March 24, that the program is facing a “small” $29 billion shortfall this year because the high 9.5 percent unemployment rate is cutting into payroll tax collections that fund the program’s benefits. Oh, and because there isn’t actually a trust fund with all the money previously collected by people paying into the system.










