Social Security Has a Surplus Not a Deficit

[The Straight Story]

Social Security Has a Surplus Not a Deficit
Thursday, March 25, 2010

The Economic Policy Institute (EPI) has taken exception to the popular notion that Social Security is going broke. In response to a recent Associated Press story, EPI’s Monique Morrissey pointed that the Congressional Budget Office—the source for AP’s dire account—has reported the trust fund for Social Security is actually still growing. It projects the fund to increase from $2.5 trillion this year to $3.8 trillion by 2020.

The confusion has developed because it is true that this year, for the first time, because 8,000,000 jobs have been lost, the fund will pay out more money in benefits than it will receive in payroll taxes. However, because Social Security gains interest income from Treasury bonds, total receipts are still larger than payments.

Still, the negative receipts/benefits balance came six years earlier than previously predicted, which does not bode well for the long-term health of the system.

http://www.allgov.com/Where_is_the_Money_Going/ViewNews/Social_Security_Has_a_Surplus_Not_a_Deficit_100325

[RKP5637]

1. Thanks for posting this. I woke up this morning to cable news pushing this,

doctors to start refusing Medicare patients, and not enough doctors because of HCR. The media sure knows how to heap it on everyone IMO, and with great panic... Mainly why I get my news from the Internet.