Some senior Democrats are claiming that Social Security does not contribute "one penny" to the federal deficit. That’s not true. The fact is, the federal government had to borrow $37 billion last year to finance Social Security, and will need to borrow more this year. The red ink is projected to total well over half a trillion dollars in the coming decade.
President Barack Obama was closer to the mark than some of his Democratic allies when he said that Social Security is "not the huge contributor to the deficit that [Medicare and Medicaid] are." That’s correct: Medicare and Medicaid consume more borrowed funds than Social Security, and their costs are growing more rapidly. But Obama’s own budget director, Jacob Lew, was misleading when he wrote recently that "Social Security benefits are entirely self-financing." That’s not true, except in a very narrow, legalistic sense, and doesn’t change the fact that Social Security is now a small but growing drain on the government’s finances.
http://factcheck.org/2011/02/democrats-deny-social-securitys-red-ink/
President Barack Obama was closer to the mark than some of his Democratic allies when he said that Social Security is "not the huge contributor to the deficit that [Medicare and Medicaid] are." That’s correct: Medicare and Medicaid consume more borrowed funds than Social Security, and their costs are growing more rapidly. But Obama’s own budget director, Jacob Lew, was misleading when he wrote recently that "Social Security benefits are entirely self-financing." That’s not true, except in a very narrow, legalistic sense, and doesn’t change the fact that Social Security is now a small but growing drain on the government’s finances.
http://factcheck.org/2011/02/democrats-deny-social-securitys-red-ink/
