[Vermont Lt]

I have to chuckle at the folks nearing Social Security who cry out for an end to government spending. Except on the Social Security they were promised.

I am sure they know the bad news:

Social Security is broke. It comes out of the general fund. The money is gone. There is no account with money in it for you.

The national debt—the money we are printing to pay for defense, social security, and every other program has to be paid with interest. We print the money to pay the interest.

I hear that most Americans only have $1,000 in savings.

If any of you are in that demographic. You should just go out and start walking. Get used to it. Because unless you go to live with your kids, that is what you will be doing on retirement.

[justlurking]

Social Security is broke. It comes out of the general fund. The money is gone. There is no account with money in it for you.

You got 2 out of 4 right.

1. Social Security is not broke, yet. And, even if nothing is done, it won't go "broke" -- they will just have to reduce benefits significantly. See my post #47.

   However, if you really mean "broken", I'll agree with that.

2. Only a small portion comes out of the general fund, and that began in 2010 -- when redemption of the Trust Fund started. The overwhelming majority is paid from payroll taxes collected the same year from people still working, although that ratio will change in the next two decades.

3. The money is indeed "gone" (with the exception of the relatively small portion in the Trust Fund). Your contributions were paid to your parents and grandparents, and your kids and grandkids will pay for your benefits.

4. If you think there is an account in your name, go look at your Social Security annual statement. Where does it say how much you contributed, much less an actual balance? Your statement only says how much of your wages were taxed.

   Social Security doesn't want you to easily figure out how much you contributed, much less how much it would have grown if you had just put it into long-term US Treasury Bonds. They don't want you to think you might actually have a claim on a certain amount, or be able to compare the balance to the benefit they are promising.