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WHO TOOK TRILLIONS OF $ FROM SOCIAL SECURITY AND NEVER PAID IT BACK?

 

The total US national debt is now $31.4 trillion. Of that amount, the US government has "borrowed" $6.18 trillion from Social Security trust funds. To date, the government still owes the Social Security Administration the total $6.18 trillion.

Let's put that in perspective: Social Security faces a shortfall of $13.6 trillion over the next ten years (2023 - 2033). It will pay out $13.6 more than it will bring in. That shortfall equals 3.5 percent of all future taxable payrolls in the nation. Almost 25 percent of the total national debt has been "borrowed" from the Social Security trust fund--the fund which pays retirement, survivors and disability benefits: in other words, your money.

In the past, when the US general fund ran low on money, Congress borrowed trillions of dollars from the Social Security funds and left what amounts to unfunded IOUs in place of the money. Thus, Congress has no obligation to pay the money back. No wonder the Social Security trust funds are running low. Almost one-fourth of the total national debt was pulled out of Social Security trust funds and never repaid.

What would happen if the US government paid back it's debt to Social Security? What effect would putting $6.18 trillion back into Social Security have?

First, it removes the financial crisis for Social Security, which would no longer be in danger of default in 2033. In fact, that infusion of funds, including future interest, could keep Social Security afloat for about half a century. Second, it would pay off a huge chunk of the US national debt (assuming the money wasn't borrowed from somewhere else).

Unfortunately, no one expects the government to repay the Social Security debt. Among other reasons, the government doesn't have enough money to repay it. Other solutions need to be found to save Social Security and keep it solvent.

In the meantime, beneficiaries will continue to receive their benefit checks for the next decade. But starting around 2033, the trust funds will start running too low on money to pay benefits all benefits.
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