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
Date Written: January 24, 2011
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: Suggested Citation