A demand for honesty over Social Security's big lie

Friday, June 15, 2018
 | 
Chris Woodward (OneNewsNow.com)

Social Security check U.S. TreasuryIt's one of the oldest arguments against reforming Social Security program – don't touch my money! - but an expert on the issue says that's a deceptive belief.

U.S. births recently hit a historic 30-year low and some say those numbers suggest Social Security, already facing an uncertian future, is in bigger trouble. 

"No doubt people have paid very high taxes for their entire lives in order to be able to earn those benefits," says Romina Boccia of The Heritage Foundation, "but the problem is they have been lied to."

That's because the money people are paying in, she points out, isn't being saved and put aside on their behalf in some sort of trust fund.

"All the money they paid in taxes was immediately sent out the door to other beneficiaries," she warns, "and now that their benefits are coming due, those benefits are paid by the younger generation, by their children and grandchildren."

In fact, fewer than three workers are shouldering the burden of every retiree. So every family that has fewer than three children is relying on the children of another family to provide them with those retirement benefits.

"This is one of the big problems with Social Security," adds Andrew Biggs of the American Enterprise Institute. "It was set up to look like a program where you were paying in, you were building an account, and then you draw that money down in retirement. So people feel like a real ownership in the program."

If you ask Biggs, who worked for the Social Security Administration before joining AEI, Social Security has never really been a funded program.

"It's always been funded on kind of a pay-as-you-go basis," he explains, "where the taxes paid by yesterday's workers paid for benefits for yesterday's retirees."

That deal, he says, has to change for protect future generations.

 

Consider Supporting Us?

The staff at Onenewsnow.com strives daily to bring you news from a biblical perspective. If you benefit from this platform and want others to know about it please consider a generous gift today.

MAKE A DONATION

Comments

We moderate all reader comments, usually within 24 hours of posting (longer on weekends). Please limit your comment to 300 words or less and ensure it addresses the article - NOT another reader's comments. Comments that contain a link (URL), an inordinate number of words in ALL CAPS, rude remarks directed at other readers, or profanity/vulgarity will not be approved. More details

SIGN UP FOR OUR DAILY NEWSBRIEF

SUBSCRIBE

VOTE IN OUR POLL

If pedophiles are eventually accepted in society by some, who will be their most vocal defenders?

CAST YOUR VOTE

GET PUSH NOTIFICATIONS

SUBSCRIBE

LATEST AP HEADLINES

Trump talks tougher, now says he warned Putin on meddling
FBI Director Wray says Russia continues to sow discord in US
Zuckerberg: Holocaust deniers won't be banned from Facebook
Latest: Oregon wildfire grows to 70 square miles, 1 dead
Court blocks measure asking voters to split California in 3
A nonbinding immigration bill becomes campaign battlefield
Trump: New Air Force One to get red, white and blue makeover

LATEST FROM THE WEB

Trump says he holds Putin responsible for election meddling, defends Helsinki performance
Why is pro-abortion judge controlling abortion case?
'It happened!' – CNN's Brian Stelter exults after reporters band against Sarah Sanders
Putting bigots in charge
Video: Man struggles stowing carry-on. 'Seriously, how do people like this survive in the world?!'

CARTOON OF THE DAY

Cartoon of the Day

REASON & COMPANY

NEXT STORY
Ocasio-Cortez win reestablishing socialism in US politics

Democratic Socialists of AmericaVoters summonsed socialism back into American politics Tuesday at New York’s Democratic primary by handing Democratic Socialists of America (DSA) member Alexandria Ocasio-Cortez a win in the race for the state’s 14th Congressional District.