posted on July 29, 2010 12:43:40 PM new
Dear MoveOn member,
Social Security is under attack and we need to fight back against the lies.
Have you heard that Social Security is going bankrupt? Driving up the deficit? In crisis?
Well none of that is true. These are all myths that opponents of Social Security have been spreading to scare people into accepting benefit cuts this fall. But the myths are taking hold—so we have to fight back with the facts.
So we've put together a list of the top five myths about Social Security, along with the real story. Can you check out the list and then share it with your friends, family, and coworkers?
Top 5 Social Security Myths
Myth #1: Social Security is going broke.
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?
Thanks for all you do.
–Nita, Duncan, Daniel, Kat, and the rest of the team
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=89703&id=22141-8326586-R9qfzax&t=4
2. "The Straight Facts on Social Security," Economic Opportunity Institute, September 2009
http://www.moveon.org/r?r=89704&id=22141-8326586-R9qfzax&t=5
3. "Social Security and the Age of Retirement," Center for Economic and Policy Research, June 2010
http://www.moveon.org/r?r=89705&id=22141-8326586-R9qfzax&t=6
4. "More on raising the retirement age," Washington Post, July 8, 2010
http://www.moveon.org/r?r=89706&id=22141-8326586-R9qfzax&t=7
5. "Social Security is sustainable," Economic and Policy Institute, May 27, 2010
http://www.moveon.org/r?r=89707&id=22141-8326586-R9qfzax&t=8
6. "Maximum wage contribution and the amount for a credit in 2010," Social Security Administration, April 23, 2010
http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/240
7. "Trust Fund FAQs," Social Security Administration, February 18, 2010
http://www.ssa.gov/OACT/ProgData/fundFAQ.html
8."To Deficit Hawks: We the People Know Best on Social Security," New Deal 2.0, June 14, 2010
http://www.moveon.org/r?r=89703&id=22141-8326586-R9qfzax&t=9
posted on August 2, 2010 05:55:49 PM new
I hope it is not in trouble,there are so many people who live on their SS checks and nothing else.
*
There is no 'Global savings glut',only wild horses and loose bankers.
posted on August 3, 2010 09:59:08 AM new
Scarey myths promulgated by the right. I was talking to a friend recently who is a stay at home mom with a firefighter husband. He makes good money, but is far from wealthy. She's been convinced by the right that letting the Bush tax cuts expire will devastate her family. This is not a particularly dumb person, but she REFUSES to understand or believe that the president only wants to let the cuts expire for the top earning 2-3% of the population, and that even if those expire, they'd only go back to the level those folks were paying when times were good for everybody economically. This is the effectiveness of the new right's fear machine. It worked when Bush's string pullers wanted to invade Iraq and it's working now against everything Obama tries to do. Very disheartening.
posted on August 3, 2010 01:30:37 PM new
Profe, it's so distressing to me to see how Fox and the far right have distorted nearly everything happening during Obama's term of office. Sometimes outright lies.
