By Steven HillSocial Security is not going broke, not by a long shot. The Social Security Board of Trustees released its annual report to Congress in July 2015, and among all the tables, charts, and graphs in that big fat report, it would be easy to miss the most important take-home message: Social Security is one of the best-funded federal programs in US history. That’s because it has its own dedicated revenue stream, which is composed of the insurance premiums paid by every worker (deducted from our paychecks by what is called “payroll contributions”), which are automatically banked into the Trust Fund. Even the Pentagon and the defense budget do not have their own dedicated revenue stream.
By Steven HillSocial Security will always have somewhat of a perception problem among younger Americans. For a certain number, it will always be viewed as “money for old people who get it from the government.” For people of any age who are working and having taxes deducted from their paychecks, Social Security is a benefit for someone else—elderly retirees. But at some point in their life, those people will no longer be able to work, and, like any type of insurance, Social Security will be there to protect them with “wage insurance” from a complete loss of earned income. Social Security is self-insurance in that way, that is, protection against the risks we all face due to old age, disability, or death. That’s a point that must be brought home to every new generation of young Americans.
By Steven HillSocial Security is bankrupting us. It’s outdated. It’s a Ponzi scheme. It’s socialism. It’s stealing from young people. The opponents and pundits determined to roll back the United States to the “good old days” before the New Deal regularly trot out a number of bogeymen and bigfoots to scare Americans into not supporting their own retirement well-being. That hasn’t worked too well. Americans of all political stripes remain strongly supportive of Social Security and other so-called “entitlements” like Medicare.
By Steven HillThe US retirement system, with all its components parts including Social Security at its core, has been the yellow brick road leading to a pot of gold at the end of most workers’ careers. Social Security has demonstrated its value decade after decade, and it has been one of the most successful government programs of all time. And yet it is threatened now more than ever by leading politicians, business leaders, and media pundits who insist, despite all the facts to the contrary, that Social Security benefits are no longer affordable and must be cut.