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Saturday, May 25, 2013
Top 5 Social Security MythsPosted Thursday, July 29, 2010, at 3:44 PM
Yet another mythbuster, this one on taxes. You have to hate when facts get in the way of rhetoric.
Original post can be found here
Myth One: Social Security is going broke
There is actually no verifiable information to support the going broke myth. Even by conservative standards Social Security would still be paying at 75% AFTER 2034. That is with absolute no changed to Social Security between now and then.
Myth Two: We have to raise the retirement age because people are living longer
While it may seem that people are living longer our life expectancy has not actually risen that much since 1930. As the link points out that while workers in the top half of the income brackets are living on average 6.5 years longer since 1972 but as you go down the scale so to does the life expectancy which by the time you get to the lower levels of the income brackets the rate is only 2 years longer. The only reason to raise the retirement age is so that those that are trying to close out Social Security can get an across the board cut. But fiscally it does not actually make any sense and it adds nothing to Social Security.
Myth Three: Benefit cuts are the only way to fix Social Security
I know of no one that actually would want to fix Social Security that believe that this would do anything to fix it. In fact it would further hurt Social Security. I better system to at the very least strengthen Social Security is to raise the level at which payments into Social Security should be cut off. Right now it stands $106,000 and that rate gets us to at least 2037 before Social Security would be unable to pay 100% and again that's with no fixes.
Myth Four: The Social Security Fund has been raided and is full of IOUs.
The original comments on this myth are better than what I could say. "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." Of course you would never know that if you only listened to the side that wants to destroy Social Security. This does go along with Myth One. If Social Security can pay in full to at least 2037, with no fixes, than that busted myth immediately busts this myth.
Myth Five: Social Security adds to the deficit.
This myth is just so ridiculous it is hard to imagine that enough people believed in it that it became a myth in the first place. Social Security is, by law, separate from the budget. This simple little law makes it impossible for Social Security to add even a tenth of a penny to the deficit.
The flat out bottom line is that despite what we have been told for close to at least twenty years by different Republican administrations Social Security is fine and it is in no immediate (at least 27 years with absolutely no fixes) threat of going broke. The people that want you to believe that it is going broke (or even the bigger lie, already broke) and there is no way you will have Social Security by the time you retire are the same people that want to completely dismantle it. Why else would they spread these
The sadder part of this is that if people just looked into the myths that were being spread about Social Security they would see quite immediately how weak the argument is to begin with.
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