Associated Press: Social Security On Brink Of Insolvency Following $2.5 Trillion Robbery


Following reports that crooked politicians stole $2.5 Trillion from the Social Security fund the Associated Press is now warning Social Security is on the brink of insolvency.

I recently ran a report on how crooked politicians stole $2.5 trillion from the social security trust fund.

How Your Social Security Money Was Stolen – Where Did the $2.5 Trillion Surplus Go?
How Republicans, Democrats and the Mega-Wealthy Stole Your Social Security Money

As I’ve been reporting for quite some time now, trillions of our tax dollars have been looted by Wall Street, wars, global corporations and the richest one-tenth of one percent of the population. The economic crisis has made this blatant fact much more evident to the average person. Now that these elaborate schemes are coming undone and major cuts to vital social programs are beginning to be implemented, the American public is going to get a harsh wake up call.

With cuts to Social Security on the way, and Obama’s recent comments saying that he cannot guarantee that Social Security checks will go out if the debt ceiling doesn’t get raised, it’s time to take a closer look at why politicians are pushing to cut this vital program.

The Social Security Trust Fund should currently have $2.5 trillion in surplus. So how is it that these checks could stop being issued if the debt ceiling isn’t raised? Economics professor Dr. Allen Smith, author of The Looting of Social Security: How The Government is Draining America’s Retirement Account, has been reporting on the theft of Social Security funds for years. As he sums it up:

“The government’s $2.5 trillion debt to Social Security is the real reason that so many politicians want to cut benefits. They are trying to find a way to avoid having to repay the looted money…. Given the fact that much of the surplus revenue from the 1983 payroll tax hike ended up in the pockets of the super rich in the form of income tax cuts, I propose a special tax on this group of taxpayers to recoup the missing Social Security money. The government used revenue from the Social Security payroll tax hike to fund tax cuts for the rich because that was where the money was. I think the government should recover the ‘embezzled’ money by taxing the rich.”

Here are reports by Dr. Allen Smith that we have featured over the past two years:

Apparently apathy overwhelmed the public who didn’t care at that point to do any more than respond by saying “What else is new? They have been robbing money for years.”

Well here is something new and I don’t think people are going to respond to well to the news.

Social Security is on the brink of insolvency, according to a report from The Associated Press, which states the Social Security’s disability fund will go broke by 2017, several decades earlier than originally anticipated.

Social Security Disability Insurance on Brink of Insolvency

WASHINGTON — Laid-off workers and aging baby boomers are flooding Social Security’s disability program with benefit claims, pushing the financially strapped system toward the brink of insolvency.

Applications are up nearly 50 percent over a decade ago as people with disabilities lose their jobs and can’t find new ones in an economy that has shed nearly 7 million jobs.

The stampede for benefits is adding to a growing backlog of applicants — many wait two years or more before their cases are resolved — and worsening the financial problems of a program that’s been running in the red for years.

New congressional estimates say the trust fund that supports Social Security disability will run out of money by 2017, leaving the program unable to pay full benefits, unless Congress acts. About two decades later, Social Security’s much larger retirement fund is projected to run dry as well.

 

Categories: ECONOMY

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