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Social Security and Federal Debt…a Lingering Argument
The general question of Social Security’s role in our growing national debt continues to pop up in various media circles. Many experts suggest that the borrowing necessary to cover the difference between the program’s incoming revenue and the total cost of operating Social Security’s Old-Age and Survivors Insurance and Disability Insurance components constitutes an addition to federal debt. While that may be numerically true, it’s important to look beyond the numbers and examine the nuances of intergovernmental accounting. Cato Institute’s Romina Boccia and Ivane Nachkebia have done just that and posted a study explaining their view on “How Social Security Adds to Deficits and Debt Already.” Read it here…
But, in defense of the Social Security Administration, there’s a bit more to this question that should be considered. Rather than singling out Social Security–a program that’s facing its own problems–one needs to examine how the imbalance between revenue and expense developed over time. For more on the subject, check out this post from the AMAC Foundation.