Democrats Deny Social Security’s Red Ink

Some claim it doesn't contribute to the federal deficit, but it does.

Some senior Democrats are claiming that Social Security does not contribute "one penny" to the federal deficit. That's not true. The fact is, the federal government had to borrow $37 billion last year to finance Social Security, and will need to borrow more this year. The red ink is projected ... Full Story »

Posted by Fabrice Florin - via FactCheck

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Bonnie Britt
2.0
by Bonnie Britt - Feb. 26, 2011

Annenberg Public Policy Center produced bad journalism in this instance for the reason that the seeds of its own bad argument are contained in the following text: "Don't be confused by the fact that the trust funds are projected to continue growing for several more years. That's because Treasury must still credit interest payments to the funds on the borrowings from earlier years. But unless taxes are increased or other spending is cut severely, the government will have to borrow from the public to pay the interest that it owes to the trust funds." That is a whole different matter than denying that Social Security itself is running red ink. Social Security pays for itself and the Social Security system is not responsible for the sleight of hand by both Republican and Democratic administrations of balancing the rest of federal government spending on the back of Social Security. It is the fault of administrations that ran their all-too-frequent wars "off the books" and then borrowed from Social Security to pay for these junkets. The Annenberg Public Policy Center ignores these facts in concluding that Social Security contributes to the federal deficit. It is more accurate to admit that the many wars Republican and Democratic governments are so fond of fighting must be paid for and that they are not paid for in the sense of appearing in the public budget. For these administrations to take funds from Social Security to partially finance their wars is the cause of the issues Social Security will be having. A better argument would be for the rest of the federal government to stop raiding the Social Security till and to pay back what has been borrowed.

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