What Now? Social Security Debt Due
So, the federal government has deficits as far as the eye can see and higher than the Statue of Liberty. What could we layer on top of that? How about the Social Security “trust fund” debt that’s now coming due?
… This year, for the first time since the 1980s, when Congress last overhauled Social Security, the retirement program is projected to pay out more in benefits than it collects in taxes — nearly $29 billion more.
Sounds like a good time to start tapping the nest egg. Too bad the federal government already spent that money over the years on other programs, preferring to borrow from Social Security rather than foreign creditors. In return, the Treasury Department issued a stack of IOUs — in the form of Treasury bonds — which are kept in a nondescript office building just down the street from Parkersburg’s municipal offices.
I’ve long said that I don’t expect ever to collect a penny of Social Security, in part because the federal government’s schemes for taking money now with no real plan to pay it back makes Bernie Madoff look like a dabbler. This could be the century that our society finally must learn the error of its progressive ways, or it could be the century of our collapse.