No!
In a somewhat convoluted way, some people make the case that Social Security does add to the federal deficit and debt.
- Social Security Trust Fund:
- Historically, when Social Security collected more in payroll taxes than it paid out in benefits, the surplus was invested in U.S. Treasury securities. This created the Social Security Trust Fund. What many limited knowledge people call Congress stealing SS money.
- These Treasury securities are a form of debt owed by the U.S. government.
- When Social Security redeems these Treasury securities to pay benefits, the Treasury must raise that money, often by issuing new debt to the public.
- Therefore, while Social Security itself doesn’t have the authority to create debt in the same way other government programs do, the act of paying out benefits, especially when those benefits exceed incoming payroll taxes, requires the treasury to create new debt to allow the trust to redeem bonds.
- This is why there are differing views. Some people will state that it does not directly create debt, and others will state that due to the need for the treasury to sell bonds, that it does contribute to the debt held by the public.
- The need for the treasury to sell bonds is the issue, not Social Security. To keep our deficit based government running, Treasury needs to sell bonds to someone and no matter who redeems bonds – including foreign governments – more borrowing occurs to pay them. There is nothing unique to Social Security.
Today the Social Security trust is redeeming bonds to pay benefits and since there is no excess revenue, it is not investing in new bonds. Thus the treasury must seek other sources to sell debt.
QUINNSCOMMENTARY 
Al Lindquist
the largest contributors to our debt and deficit is SS–Medicare–Medicaid–interest on debt–to most folks it’s all just one big pot and folks do worry about whether they will collect their benefit–set up a commission like we had 40+ years ago–decide to implement their ideas and then go for it–
better yet set accounts using the TSP for the grandkids in their name and run it like a pension with no early withdrawals-an annuity for 30% of your retirement benefit–the other 70% a withdrawal plan–death allows a certain % to be willed away. A few other countries do this as well as Galveston, TX.
Jack had some interesting ideas a few weeks back–we could cap the COLA like many public pensions have done (you get no more than say 3% annually)–a number of ways to work on this SS dilemma but nobody has the political courage to tackle the problem–
remember the Dems running the Paul Ryan ads showing him wheeling grandma to the cliff and then over she went–those mean Republicans trying to do away with Medicare.
LikeLike
Or for Social Security to come as close to equalizing its income and outgo. The exceeding of income to payouts is unnecessary tax burden on current workers.
LikeLike