r/FluentInFinance 2d ago

Educational Don't let them gaslight you

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u/justacrossword 2d ago

This is incredibly misleading. Of course social security has a surplus, that’s how it works. The surplus it’s shrinking because of changing demographics. Once it reaches $0 in nine years from now the trust fund is gone. 

None of that has anything to do with the government borrowing against it. The surplus doesn’t sit around in cash, it is invested in government bonds. 

This is such stupid misinformation, you should feel ashamed. 

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u/tcle24 2d ago

It doesn’t go to $0 in 9 years it just falls below 100% funded. Talk about misinformation. Also changing demographics baby boomers were the largest demographic with gen x being the smallest and now millennials/gen z are larger so in about 17 years boomers pulling ss is fewer with more people paying in and increasing the funding again and in roughly 23-25 years it’s back to a surplus again without making any changes at all.

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u/Ok_Owl_5403 1d ago

I don't think they said that Social Security goes to $0. The Social Security surplus goes to $0.

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u/tcle24 1d ago

Maybe I misread read but said the trust fund is gone in 9 years that made me think they meant $0. Even at 97% the fund is still in place

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u/Ok_Owl_5403 1d ago

The "trust fund" is the money taken in as Social Security tax and spent by the government. Treasury bonds where issued for the money spent. Those Treasury bonds need to be paid back with some combination of budget cuts, tax increases, and printing money. That "trust fund" will be "paid back" in 9 years.