Published by the Foundation for Economic Education
February 15, 2012 | Subscribe via RSS
“The retirement nest egg of an entire generation is stashed away in this small town along the Ohio River: $2.5 trillion in IOUs from the federal government, payable to the Social Security Administration. It’s time to start cashing them in.” (Washington Times, Tuesday)
Get in line.
FEE Timely Classic
“A College Fund on the Social Security Model” by William B. Conerly
Politicians in Alabama and Georgia are cashing in on immigration fears to buy votes, but everyone pays, as Scott Beaulier, Darrick Luke and Daniel Smith explain. Robert Higgs asks if regime uncertainty explains the current malaise. Andrew Morriss marvels at how much better we live than Elvis did. Gary Chartier asks who’s really on the side of the poor and Robert Murphy says the Euro shows how little one can expect from a currency born entirely of government.
Reviewed by Aeon J. Skoble
Reviewed by Lawrence H. White
Reviewed by George C. Leef
Reviewed by Wendy McElroy
by Scott Beaulier
by Andrew P. Morriss
by Gary Chartier
by Richard W. Fulmer
by Peter McAllister
by Robert P. Murphy
by Samuel R. Staley
by John Stossel
by Tyler Watts
by Robert Higgs
by Sheldon Richman
by Sheldon Richman
by Charles W. Baird
by Donald J. Boudreaux
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Comment by AnnInFL on 17 March 2010:
Social Security is not legally a “trust fund”. It is just an account like any other at the U.S. Treasury. The “trust fund” language was just used to sell the program to the public. Social Security tax receipts go straight into the general fund at the Treasury. SSA receives an equivalent credit of Treasury bonds (IOUs). Social Security payments are paid out with cash from the Treasury, and the Social Security account is debited the equivalent value of treasury bonds. The fund is insolvent now, since it is taking in less than it is paying out. There are no individual accounts, and courts have ruled you have no property claim. If the fund is exhausted, you will have no legal claim to any benefits. They can raise the payroll taxes and reduce Social Security benefits at any time.