I saw an ad yesterday, and it got me to thinking, who's telling the truth about Social Security and the Deficit?🤔
Here is Ronald Reagan in 1992 definitively saying that SSI has nothing to do with the deficit:
“Social Security has never contributed a dime to the nation’s $14.3 trillion debt…not one penny to our federal budget deficit this year or any year in our nation’s history.”
So what was Mitch McConnell
Primer: Social Security is a pay-as-you-go system, which means that payments collected today are immediately used to pay benefits. Until recently, more payments were collected than were needed
Here is what happened in 1983, the beginning
Social Security had a severe cash crunch in 1983. Because of shifting demographics, the program was within months of not having enough money coming in to pay benefits.The government solved its problem by making the problem for workers worse — it raised
Here's how the congressional raid works: The surplus payroll tax dollars go into the Social Security Trust Fund, which in turn uses them to buy special issue bonds from the U.S. Treasury. Then
President Bush explained this pretty well
In 2006 this passed $1 trillion used for programs other than Social Security since 1983 not including interest.
Fifty years ago,
The deficit argument is the money they have to pay back to the fund, that they owe the fund.