Reality: There is no Social Security crisis. By 2023, Social Security will have a $4.6 trillion surplus (yes, trillion with a 'T'). It can pay out all scheduled benefits for the next quarter-century with no changes whatsoever.1 After 2037, it'll still be able to pay out 75% of scheduled benefits—and again, that's without any changes. The program started preparing for the Baby Boomers' retirement decades ago.2 Anyone who insists Social Security is broke probably wants to break it themselves.
Myth #2: We
have to raise the retirement age because people are living longer.
Reality: This is a red-herring to trick
you into agreeing to benefit cuts. Retirees are living about the
same amount of time as they were in the 1930s. The reason average life
expectancy is higher is mostly because many fewer people die as children
than they did 70 years ago.3 What's more, what gains there
have been are distributed very unevenly—since 1972, life expectancy
increased by 6.5 years for workers in the top half of the income
brackets, but by less than 2 years for those in the bottom half.4
But those intent on cutting Social Security love this argument because
raising the retirement age is the same as an across-the-board benefit
cut.
Myth #3:
Benefit cuts are the only way to fix Social Security.
Reality: Social Security doesn't need
to be fixed. But if we want to strengthen it, here's a better
way: Make the rich pay their fair share. If the very rich paid taxes on
all of their income, Social Security would be sustainable for decades
to come.5 Right now, high earners only pay Social Security
taxes on the first $106,000 of their income.6 But
conservatives insist benefit cuts are the only way because they want to
protect the super-rich from paying their fair share.
Myth #4: The
Social Security Trust Fund has been raided and is full of IOUs
Reality: Not even close to true.
The Social Security Trust Fund isn't full of IOUs, it's full of U.S.
Treasury Bonds. And those bonds are backed by the full faith and credit
of the United States.7 The reason Social Security holds only
treasury bonds is the same reason many Americans do: The federal
government has never missed a single interest payment on its debts.
President Bush wanted to put Social Security funds in the stock
market—which would have been disastrous—but luckily, he failed. So the
trillions of dollars in the Social Security Trust Fund, which are
separate from the regular budget, are as safe as can be.
Myth #5:
Social Security adds to the deficit
Reality: It's not just wrong—it's
impossible! By law, Social Security's funds are separate from
the budget, and it must pay its own way. That means that Social Security
can't add one penny to the deficit.8
Defeating these myths is the first step to stopping Social Security
cuts. Can you share this list now?
Sources:
1."To Deficit Hawks: We the People Know Best on Social Security," New
Deal 2.0, June 14, 2010
http://www.moveon.org/r?r=
http://www.moveon.org/r?r=
2. "The Straight Facts on Social Security," Economic Opportunity
Institute, September 2009
http://www.moveon.org/r?r=
http://www.moveon.org/r?r=
3. "Social Security and the Age of Retirement," Center for Economic and
Policy Research, June 2010
http://www.moveon.org/r?r=
http://www.moveon.org/r?r=
4. "More on raising the retirement age," Washington Post, July 8, 2010
http://www.moveon.org/r?r=
http://www.moveon.org/r?r=
5. "Social Security is sustainable," Economic and Policy Institute, May
27, 2010
http://www.moveon.org/r?r=
http://www.moveon.org/r?r=
6. "Maximum wage contribution and the amount for a credit in 2010," Social Security
Administration,
April 23, 2010
http://ssa-custhelp.ssa.gov/
http://ssa-custhelp.ssa.gov/
7. "Trust Fund FAQs," Social Security Administration, February 18, 2010
http://www.ssa.gov/OACT/
8."To Deficit Hawks: We the People Know Best on Social Security," New
Deal 2.0, June 14, 2010
http://www.ssa.gov/OACT/
http://www.moveon.org/r?r=
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