Sunday, July 18, 2010

The Non-Existent Social Security Trust Fund

The Social Security trust fund will be exhausted, by the latest, 2037; probably much, much sooner.

But actually, there is no Social Security trust fund. It is a figment of a government politician’s imagination that the dutiful media repeat over and over again.

Money taken from present-day workers goes into general funds, in effect, to pay for current Social Security outlays.

It’s a Ponzi scheme, not a trust fund. It’s not comparable to a reserve-investment or a private insurance company program. The same private programs that politicians love to demonize to suit their populist purposes.

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