All Posts Tagged With: "government bonds"

The Social Security Trust Fund Is Already Empty

The annual report of the Social Security Trustees has been out for a few days now, and the news was bad on its face; the Social Security Trust Fund is now expected to be depleted by 2033, three or four years earlier than had been previously thought. This means that after 2033 the Social Security system will depend entirely upon the payroll taxes it will then be collecting, and the huge surpluses built up from payroll taxes of the past decades will have gone.

That is the nightmare in the headline news; the reality is much worse.

The Social Security Trust Fund does not exist in any meaningful way. What happened was this: Over the past years, the Social Security Administration collected more in payroll …


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