Profile picture
🍿Justice is Served @pleasesaveour
, 11 tweets, 3 min read Read on Twitter
‼️Social Security/Deficit Thread‼️
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:



1/
President Obama said the same thing in 2011:

“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.”

washingtonpost.com/blogs/fact-che…

So what was Mitch McConnell
talking about when he said entitlements are 70% of the government spending every year?

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
for benefits. So Social Security loaned the money to the U.S. government, which used it for other things. In exchange, Social Security received interest-bearing Treasury securities, because they have to zero out the books every year.

Here is what happened in 1983, the beginning
of the current crisis:

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
taxes, cut benefits, and increased the retirement age.

nysun.com/opinion/stoppi…

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
Congress can use those dollars, in the Treasury, to spend on anything it wants. All that Social Security has are the bonds. The bonds pay interest, but Congress raids the interest, too, by simply placing more bonds in the trust fund.

President Bush explained this pretty well
in a speech in 2005: "You pay your payroll tax, we pay out to current retirees, and then we spend your money on other government programs."

In 2006 this passed $1 trillion used for programs other than Social Security since 1983 not including interest.

Fifty years ago,
there were 16 workers for every retiree. Now there are three, and soon there will be only two. The only way to stop this is to stop the raiding of interest and SSI.

The deficit argument is the money they have to pay back to the fund, that they owe the fund.
Basically, they don't want to pay off their debt. Get it?
@threadreaderapp unroll please
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to 🍿Justice is Served
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert is as a PDF, save and print for later use!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member and get exclusive features!

Premium member ($30.00/year)

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member and get exclusive features!

Premium member ($30.00/year)

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!