Social Security

And it's back on. I've been a bit busy, distracting from my duties in the war on error.

Today's error is a common one: Saying Social Security does not add to the deficit because its future claims are covered, or reversing this claim. I'm not going to weigh in on the second part: it's an accounting issue, and I'm not qualified to answer. But I can say that the Trustees of the Social Security Trust Fund disagree.

So if the US government has these obligations to retirees, why aren't they part of the deficit? Simply put, it's because the government doesn't have to pay these obligations. Social Security benefits are defined by Congress and can be cut at any time. Furthermore, the obligations are on a fund which holds Treasuries and not on the Treasury itself. The debt only describes the amount the Treasury owes, and not the obligations that other government entities have.

Social Security doesn't add to the deficit because it's in good financial shape. It doesn't add to the deficit any more then you owe your Aunt a present because you said you would get her one. It also doesn't add to the deficit because it's separate from the obligations the government owes, the same way your debt isn't your brother's debt, even if you think he might bail you out.