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Top 5 Social Security Myths!
Rumors of Social Security's demise are greatly exaggerated. But some powerful people keep spreading lies about the program to scare people into accepting benefit cuts. Can you check out this list of Social Security myths and share it with your friends, family and coworkers?
Myth 1: Social Security is going broke.
Reality: There is no Social Security crisis. By 2023, Social Security will have a $4.3 trillion surplus (yes, trillion with a 'T'). It can pay out all scheduled benefits for the next quarter-century with no changes whatsoever.[1] After 2037, it'll still be able to pay out 75% of scheduled benefits--and again, that's without any changes. The program started preparing for the Baby Boomers retirement decades ago.[2] Anyone who insists Social Security is broke probably wants to break it themselves.
Myth 2: We have to raise the retirement age because people are living longer.
Reality: This is a red-herring to trick you into agreeing to benefit cuts. Retirees are living about the same amount of time as they were in the 1930s. The reason average life expectancy is higher is mostly because many fewer people die as children than did 70 years ago.[3] What's more, what gains there have been are distributed very unevenly--since 1972, life expectancy increased by 6.5 years for workers in the top half of the income brackets, but by less than 2 years for those in the bottom half.[4] But those intent on cutting Social Security love this argument because raising the retirement age is the same as an across-the-board benefit cut.
Myth 3: Benefit cuts are the only way to fix Social Security.
Reality: Social Security doesn't need to be fixed. But if we want to strengthen it, here's a better way: Make the rich pay their fair share. If the very rich paid taxes on all of their income, Social Security would be sustainable for decades to come.[5] Right now, high earners only pay Social Security taxes on the first $106,000 of their income.[6] But conservatives insist benefit cuts are the only way because they want to protect the super-rich from paying their fair share.
Myth 4: The Social Security Trust Fund has been raided and is full of IOUs.
Reality: Not even close to true. The Social Security Trust Fund isn't full of IOUs, it's full of U.S. Treasury Bonds. And those bonds are backed by the full faith and credit of the United States.[7] The reason Social Security holds only treasury bonds is the same reason many Americans do: The federal government has never missed a single interest payment on its debts. President Bush wanted to put Social Security funds in the stock market--which would have been disastrous--but luckily, he failed. So the trillions of dollars in the Social Security Trust Fund, which are separate from the regular budget, are as safe as can be.
Myth 5: Social Security adds to the deficit.
Reality: It's not just wrong -- it's impossible! By law, Social Security funds are separate from the budget, and it must pay its own way. That means that Social Security can't add one penny to the deficit.[8]
Closing remarks-
Reality: There is no Social Security crisis. By 2023, Social Security will have a $4.3 trillion surplus (yes, trillion with a 'T'). It can pay out all scheduled benefits for the next quarter-century with no changes whatsoever.[1] After 2037, it'll still be able to pay out 75% of scheduled benefits--and again, that's without any changes. The program started preparing for the Baby Boomers retirement decades ago.[2] Anyone who insists Social Security is broke probably wants to break it themselves.
Myth 2: We have to raise the retirement age because people are living longer.
Reality: This is a red-herring to trick you into agreeing to benefit cuts. Retirees are living about the same amount of time as they were in the 1930s. The reason average life expectancy is higher is mostly because many fewer people die as children than did 70 years ago.[3] What's more, what gains there have been are distributed very unevenly--since 1972, life expectancy increased by 6.5 years for workers in the top half of the income brackets, but by less than 2 years for those in the bottom half.[4] But those intent on cutting Social Security love this argument because raising the retirement age is the same as an across-the-board benefit cut.
Myth 3: Benefit cuts are the only way to fix Social Security.
Reality: Social Security doesn't need to be fixed. But if we want to strengthen it, here's a better way: Make the rich pay their fair share. If the very rich paid taxes on all of their income, Social Security would be sustainable for decades to come.[5] Right now, high earners only pay Social Security taxes on the first $106,000 of their income.[6] But conservatives insist benefit cuts are the only way because they want to protect the super-rich from paying their fair share.
Myth 4: The Social Security Trust Fund has been raided and is full of IOUs.
Reality: Not even close to true. The Social Security Trust Fund isn't full of IOUs, it's full of U.S. Treasury Bonds. And those bonds are backed by the full faith and credit of the United States.[7] The reason Social Security holds only treasury bonds is the same reason many Americans do: The federal government has never missed a single interest payment on its debts. President Bush wanted to put Social Security funds in the stock market--which would have been disastrous--but luckily, he failed. So the trillions of dollars in the Social Security Trust Fund, which are separate from the regular budget, are as safe as can be.
Myth 5: Social Security adds to the deficit.
Reality: It's not just wrong -- it's impossible! By law, Social Security funds are separate from the budget, and it must pay its own way. That means that Social Security can't add one penny to the deficit.[8]
Closing remarks-
So, be scared, be very scared, and not of the facts, but by those who continue their constant fearmongering that they seem to embrace on just about every issue out there.
Why do they constantly do that you ask? Because many people, who are un and under-educated, and possibly too lazy to do their own research on the subject in question buy into the lies, myths, misinformation and the fearmongering.
One of the major problems with our country is that the American electorate does not do their homework, and instead they buy into the 30 second sound-bites, pundit talking points and outright lies, and the cable news networks. Now you can pick your poison on which side you favor, or if you are in the majority and are "independent", but if you come out of your formal and/or informal education and formative years and you haven't learned to think "your" own thoughts and speak your own mind, well you just haven't learned anything of prime importance. Oh, you may be able to repeat the square roots of every number, or speak 5 different languages, but if you can't form an opinion on the way the world is going, and have the ability to stand on that opinion, and I don't mean by regurgitating your political leaning's talking/bullet points, you really haven't learned a damn thing.
Sources:
1."To Deficit Hawks: We the People Know Best on Social Security" New Deal 2.0, June 14, 2010
http://www.newdeal20.org/2
2. "The Straight Facts on Social Security" Economic Opportunity Institute, September 2009
http://www.eoionline.org/r
3. "Social Security and the Age of Retirement"Center for Economic and Policy Research, June 2010
http://www.cepr.net/index.
4. "More on raising the retirement age" Ezra Klein, Washington Post, July 8, 2010
http://voices.washingtonpo
5. "Social Security is sustainable" Economic and Policy Institute, May 27, 2010
http://www.epi.org/analysi
6. "Maximum wage contribution and the amount for a credit in 2010." Social Security Administration, April 23, 2010
http://ssa-custhelp.ssa.go
7. "Trust Fund FAQs" Social Security Administration, February 18, 2010
http://www.ssa.gov/OACT/Pr
8. "To Deficit Hawks: We the People Know Best on Social Security" New Deal 2.0, June 14, 2010
http://www.newdeal20.org/2
Why do they constantly do that you ask? Because many people, who are un and under-educated, and possibly too lazy to do their own research on the subject in question buy into the lies, myths, misinformation and the fearmongering.
One of the major problems with our country is that the American electorate does not do their homework, and instead they buy into the 30 second sound-bites, pundit talking points and outright lies, and the cable news networks. Now you can pick your poison on which side you favor, or if you are in the majority and are "independent", but if you come out of your formal and/or informal education and formative years and you haven't learned to think "your" own thoughts and speak your own mind, well you just haven't learned anything of prime importance. Oh, you may be able to repeat the square roots of every number, or speak 5 different languages, but if you can't form an opinion on the way the world is going, and have the ability to stand on that opinion, and I don't mean by regurgitating your political leaning's talking/bullet points, you really haven't learned a damn thing.
Sources:
1."To Deficit Hawks: We the People Know Best on Social Security" New Deal 2.0, June 14, 2010
http://www.newdeal20.org/2
2. "The Straight Facts on Social Security" Economic Opportunity Institute, September 2009
http://www.eoionline.org/r
3. "Social Security and the Age of Retirement"Center for Economic and Policy Research, June 2010
http://www.cepr.net/index.
4. "More on raising the retirement age" Ezra Klein, Washington Post, July 8, 2010
http://voices.washingtonpo
5. "Social Security is sustainable" Economic and Policy Institute, May 27, 2010
http://www.epi.org/analysi
6. "Maximum wage contribution and the amount for a credit in 2010." Social Security Administration, April 23, 2010
http://ssa-custhelp.ssa.go
7. "Trust Fund FAQs" Social Security Administration, February 18, 2010
http://www.ssa.gov/OACT/Pr
8. "To Deficit Hawks: We the People Know Best on Social Security" New Deal 2.0, June 14, 2010
http://www.newdeal20.org/2
1 comment:
A terrific post and you're right on every single point! Heaven help us if some of these insane teapot crackpots make it to Congress!
Well, I really don't think "heaven" can be much help...but it won't be pretty!
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