It was reported over the weekend that Social Security is now running a deficit due to lower revenues and an aging population.
The AP reports that this will not affect payouts but simply add to the federal deficit because SS has accumulated a surplus over the year. The only problem is…that money has already been spent. Our national debt is so enormous that it’s foolish to act as if these supposed surpluses mean that those who have already paid into SS will get back their investment.
Also unrealistic is the claim that SS will begin to run surpluses again by 2016. This assumes the recession will end this year and a substantial economic recovery will immediately begin. So I’ll predict right now, on the record, that SS will never run an annual surplus again…EVER.Published in