The propaganda campaign to wreck Social Security is right on track

[progree]

5. But the trust funds have been pilfered (or so I read on DU)

Response ( https://www.democraticunderground.com/10142925306 )

It hasn't been pilfered. BY LAW, each year the surpluses are loaned to the federal government
and no, that didn't start with Reagan. Nor did it start with LBJ. It has been that way from the beginning.

The government in turn creates special issue treasury securities that are deposited in the Social Security and Medicare trust funds. These earn interest -- paid in the form of more special issue treasury securities. In a year when Social Security revenues fall short of benefits then trust fund securities are redeemed to make up the difference. This is already occurring:

"At the end of 2021, Social Security’s trust fund reserves were $2,852 billion, having decreased by $56 billion over the year." - Source: 2022 Trustees report, https://www.ssa.gov/oact/trsum/

Similarly the Medicare Trust fund.

Anything you read about "pilfering" of the programs is literal fucking bullshit.

Social Security Trustees 2022 report -- https://www.ssa.gov/oact/trsum/

Edited to add, from the above link:

Federal law requires that the Trustees invest all excess funds in interest-bearing securities backed by the full faith and credit of the United States. The Department of the Treasury currently invests all program revenues in special non-marketable U.S. Government securities, which earn interest equal to rates on marketable securities with durations defined in law. The balances in the trust funds, which represent the accumulated value, including interest, of all prior program annual surpluses and deficits, provide automatic authority to pay benefits.

(By the way, the 4 trustees are all high level Biden administratrion appointees. This isn't a report by right wing economists or the right wing media or such)

The report is signed by:
    Janet Yellen, Secretary of the Treasury, and Managing Trustee of the Trust Funds.
    Xavier Becerra, Secretary of Health and Human Services, and Trustee.
    Martin J. Walsh, Secretary of Labor, and Trustee.
    Kilolo Kijakazi, Acting Commissioner of Social Security, and Trustee.

(and if some idiot says, well what do you expect liberal Democrats to say? Well, the same language is in Trump era SS Trustees reports too, for example this snapshot from 2019: https://web.archive.org/web/20191125074043/https://www.ssa.gov/oact/trsum/ )

Actuarial Note #142 of January 1999 (how interest rate determined, the trust fund securities etc.) http://www.ssa.gov/OACT/NOTES/note142.html