Can We Trust the Social Security Trust Funds?

Mercatus on Policy, No. 88, January 2011

4 Pages Posted: 25 Jan 2011 Last revised: 30 Jan 2011

See all articles by Jason J. Fichtner

Jason J. Fichtner

Johns Hopkins University - SAIS

Veronique de Rugy

George Mason University - Mercatus Center

Date Written: January 24, 2011

Abstract

In the next year, lawmakers will consider different options for Social Security reform. In order to adopt the best policies, they must have all the facts. Unfortunately, much rampant confusion exists about how the Social Security trust funds operate. Some question whether the bonds held as assets in the trust funds are "real," while others misleadingly claim that the existence of trust funds means that Social Security does not face a financial problem. The truth is while the trust funds hold real assets, Social Security also faces real financial problems.

Keywords: Social Security, Trust Fund, Social Security Reform

JEL Classification: H55

Suggested Citation

Fichtner, Jason J. and de Rugy, Veronique, Can We Trust the Social Security Trust Funds? (January 24, 2011). Mercatus on Policy, No. 88, January 2011. Available at SSRN: https://ssrn.com/abstract=1747117

Jason J. Fichtner (Contact Author)

Johns Hopkins University - SAIS ( email )

1717 Massachusetts Avenue NW
Washington DC, DC 20036
United States

HOME PAGE: http://https://sites.google.com/site/jasonjfichtner/

Veronique De Rugy

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

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