Originally posted by normbenign
As I said before, most recipients view it as and entitlement, or as you say insurance. We already know that it wasn't properly conceived, and planned as it has already had to be "saved" several times before.
Any private insurance company who calculated so badly, would have been bankrupt, and the officers probably jailed for fraud. Still SS is actuall ...[text shortened]... cluded if SS is means tested.
Of course, all that is academic, if our national debt sinks us.
The problem occurred when the government started treating the Social Security taxes just like any other tax that they could dip into to cover shortfalls in other areas that they wanted to spend the tax payers money on. It was the government that became a bad custodian of the so-called Social Security Tax Fund.
What are the Trust Funds?
The Social Security trust funds are financial accounts in the U.S. Treasury. There are two separate Social Security trust funds, the Old-Age and Survivors Insurance (OASI) Trust Fund pays retirement and survivors benefits, and the Disability Insurance (DI) Trust Fund pays disability benefits.
Social Security taxes and other income are deposited in these accounts, and Social Security benefits are paid from them. The only purposes for which these trust funds can be used are to pay benefits and program administrative costs.
The Social Security trust funds hold money not needed in the current year to pay benefits and administrative costs and, by law, invest it in special Treasury bonds that are guaranteed by the U.S. Government. A market rate of interest is paid to the trust funds on the bonds they hold, and when those bonds reach maturity or are needed to pay benefits, the Treasury redeems them.
It is clear that Congress will have to act at some time to increase the amount of taxes taken in for Social Security and medicare and/or decrease the benefits paid out.