Saturday, October 31, 2009

The Phantom Social Security Trust Fund

I just came across another article in a major financial media column. It reports the Social Security trust fund will be exhausted by 2037.

But there is no Social Security trust fund. It is a mere figment of a government politician’s imagination that dutiful media columnists repeat. Money taken from present-day workers goes into general funds, in effect to pay for current Social Security outlay.

It’s a Ponzi scheme, not a trust fund. It’s not comparable to a reserve-investment of a private insurance company program that politicians these days love to demonize to suit their purposes.

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