As the U.S. Federal deficit continues to swell, so do the concerns about Social Security.
Budget problems have been around for decades. Neither party has provided a true long-term solution. But one idea that’s constantly thrown around is spending cuts.
It’s a logical move, but it must be handled properly. The main concern of many people, especially seniors, is that programs like Social Security will be on the chopping block.
This brings up a crucial question on this matter: Does Social Security contribute to the U.S. Federal deficit?
A Complex Answer to This Important Question
The deficit is the amount of government spending that exceeds the organization’s revenue. Social Security has been funded through Treasury Bonds in recent years — but does this contribute to the debt and deficit?
The answer is yes. The reason for this is because money is borrowed to pay for these bonds, and this drives up the country’s deficit and the national debt as a whole.
While this explains the technical side of the financial cost of Social Security, the complexity doesn’t end here. Though this program is a big cost just like so many others, it’s not one that should be cut or diminished.
Even though the program now pays out more in benefits than it has on hand to pay them, most of the benefits owed are to retirees or soon-to-be retirees. These are people who have already paid money in.
Social Security should not be used as a scapegoat for inflation, nor should benefits be reduced by inflation or by cuts in the name of reducing the deficit. Spending can be closed in other ways for the betterment of Social Security and other programs.
But retirees aren’t the ones who caused this problem, and they shouldn’t be forced to pay for it!
Protecting Social Security in Federal Deficit Debates
No matter how many debates take place about cutting Social Security, we should remember that it’s not a handout. It’s not a gift, and it’s not something that seniors should have to beg for.
We take to the legislative floor to demand Congress do the right thing. Learn about our legal efforts here, then follow us on Facebook and Twitter for more Social Security coverage.
