Hannity Gets Social Security Wrong

Sean Hannity does a lot of good work getting important information into the public conversation.  He’s not perfect, and he’s never claimed to be.

 On November 11, he spent at least several minutes re enforcing the common misperception of Social Security.

 Let’s get this straight; all money paid into Social Security is simply tax revenue for the Federal government. It doesn’t go into a special Social Security fund, and it certainly does not go into an account with your name on it. What you pay in today goes into buying new Stimulus Plan road work signs tomorrow. When it comes time for you to collect Social Security, you’ll be taking right it out of the pockets of your kids and grandkids like everyone else.

Yes, there is a Social Security Trust Fund and yes it doesn’t have any “money” in it. It would be criminally irresponsible of the Trustee if it did. What the Trust Fund contains is the safest investment in the world US bonds.  The Trust Fund was established in 1937 or so to handle the excess receipts. It’s not a trust fund of your receipts to be paid out when you retire. That’s Al Gore’s “Lockbox”.

So on the 11th, Hannity was yammering away about the Trust Fund being empty, and getting back “your money” that you paid into Social Security. He really couldn’t have sounded less informed. He needs to talk to Rick Perry.

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