It is no secret that Social Security is a Ponzi scheme. There is no “trust fund.” The SS fund has a bunch of IOUs from the federal government. The federal government has no savings to back up those IOUs. It can only payoff the IOUs by taxing Americans or by borrowing (which means the Federal Reserve printing up money to buy Treasury debt).
The amount of money that the Treasury will need to raise each year to pay to the Social Security Trust Fund will explode in the not too distant future. The Social Security Administration admits this:
Social Security’s expenditures exceeded non-interest income in 2010 and 2011, the first such occurrences since 1983, and the Trustees estimate that these expenditures will remain greater than non-interest income throughout the 75-year projection period. The deficit of non-interest income relative to expenditures was about $49 billion in 2010 and $45 billion in 2011, and the Trustees project that it will average about $66 billion between 2012 and 2018 before rising steeply
And things only get worse down the road, even the phony IOUs run out. SSA again:
CONTINUED at Economic Policy Journal. Written by Robert Wenzel.