Wednesday, March 09, 2005

One of the 'truths-but-not-really' with regards to the Social Security debate is the claim that Social Security is in crisis because of its $3.7 trillion unfunded liability...

Sure, the US Treasury is obligated to send out a whole lot of Social Security checks over the next 40 or so years. And it is true that there isn't a US Government bank account holding the money to cover those checks.

But neither is there a bank account holding the money that we're going to need to spend on our national defense over the next 40 or so years. Or the money we're planning on spending on education, health care, environmental concerns and installing democracy worldwide (which may be a 40 year project).

So why is Social Security deemed to be in crisis, declared as all-but bankrupt, but not the other programs for which we'll be needing money... an awful lot of money?