November 1, 2011

Growing-Gap-Between-Contributions-and-Benefits-for-Social-Security-and-Medicare-August-2011.jpg (809×452)

Despite the facts shown on the chart below, our Vermont Senator Bernie ('Outrageous') Sanders makes outlandish statements like this: "...The truth is that the Social Security Trust Fund has run surpluses for the last quarter century. Today’s $2.5 trillion cushion is projected to grow to $4 trillion in 2023. The nonpartisan Congressional Budget Office, experts in this area, say Social Security will be able to pay every nickel owed to every eligible beneficiary until 2039...."

He implies that the 'Trust Fund' is in good shape neglecting to say that the assets have been loaned to the Government and used for other purposes. The assets are mostly IOUs from the Government. Unless spending is controlled in all areas of Government, the risk increases that these IOUs may not be paid in full because the country may not be able to meet all its obligations. The 'full faith and credit' of the U.S. is not as rock-solid as it was.

Much more here. Sen. Sanders' rhetoric does a disservice to reality.

Here's a link to a great chart on SS prospects in the years ahead from the Washington Post.

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