On Social Security Trust Funds
An excellent AP piece, via WashPost, highlights several
critical aspects regarding the status of the US Social Security system, including the following:
“Here’s how it works:
For nearly three decades Social Security produced big surpluses, collecting
more in taxes than it paid in benefits. The government, however, spent that
money on other programs, reducing the amount it had to borrow from the public,
including foreign investors. That’s why some advocates complain that Congress
has “raided” Social Security.
In return, the
Treasury Department issued special bonds to Social Security. The bonds are now
valued at $2.7 trillion. They are accounted for in two Social Security trust
funds, one for the retirement program and one for the disability program.”