Entitlements must be addressed now

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Entitlements must be addressed now

Published Sunday, December 30, 2012   |  267 Words  |  

Recently, you have published a few letters praising the financial strength of our Social Security program. This astounds me and others who pay attention to reality.

Since the Lyndon Johnson administration, all the money you paid into the Social Security Trust Fund has been loaned to the U.S. Treasury. The Social Security Trust Fund is essentially a filing cabinet in Washington filled with IOUs when it is supposed to have (as of 2011) more than $1 billion.

Who is the Social Security Trust Fund lending the money to? The world's largest debtor. A debtor who is already $17 trillion in debt and is spending $1 trillion more each year than it takes in. How does it pay its bills? It borrows another 40 cents of every dollar it spends.

With all those baby boomers retiring and those unemployed workers, there are fewer and fewer people to pay in when more people begin to collect Social Security benefits. Logically, the time will come when the fund will need to cash in those IOUs to pay benefits. Where do you think the Treasury is going to get the money?

If you doubt this, please recall that President Barack Obama said, during the last debt limitation discussions, "I cannot guarantee that those checks (Social Security payments) will go out on Aug. 3 if we haven't resolved this issue."

It sounds like a Ponzi scheme about to unravel.

Entitlements must be addressed now or we are as stupid as those lunatics in Washington.

Richard Geraghty

Hilton Head Island