Social Security Is Not Bankrupt. Not Even Close.

The 2012 Social Security Trustees Report was issued the other day and — surprise — Social Security isn’t bankrupt like everyone in the press and in the Republican Party (and Democratic Party in some cases) are telling you.

The most important take-away points from the 2012 Trustees Report will be that Social Security has a large and growing surplus; that without any Congressional action, Social Security will continue to pay benefits to America’s eligible working families for decades; and that with modest legislated increases in revenue, it will continue to pay those benefits for the next century and beyond.

Atrios noted that Mark Warner (D-VA) is lying about the Trustees Report, suggesting that it says the fund “runs dry” by 2033.

Wrong!

After 2033, if nothing is done to increase revenue (Congress will do something), Social Security will still be able to pay out 75-80 percent of benefits — calculated based on 2033 money, which is actually more than people are being paid in benefits right now. And that’s if NOTHING is done to increase revenue before then. In other words SOCIAL SECURITY IS RUNNING A SURPLUS AND EVERYTHING IS GOING TO BE JUST FINE!!!11!!1

Don’t believe the myths. And for heaven’s sake, vote against anyone who wants to privatize the system.

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  • rikyrah

    Warner is pretty pathetic.

  • http://pulse.yahoo.com/_TLHIXVS2CHDJNWYPZJIZ5NNZ3A Robert

    Our budget deficit is substantially financed by borrowing money from the Social Security Trust Fund. Does the SS report assume that money will be paid back by 2033?

    • i_a_c

      It’s all the same pile of money. If money is used from the Social Security Trust Fund, it is a “loan” to the government, and public debt is issued to replace it.

    • http://www.politicalruminations.com/ nicole
  • http://www.politicalruminations.com/ nicole

    “vote against anyone who wants to privatize the system”

    Absolutely right!

    Consider what would have happened to millions of people had social security been privatized prior to the 2008 crisis.

    Anyone wanting to privatize the system is looking to either end entitlement programs, or remove their teeth.