14 hours ago
- Business
- Wall Street Journal
We've Already Hit the Iceberg
Regarding your editorial 'The Social Security Iceberg Gets Closer' (June 20): In reality the iceberg has been tearing open the hull of our 'ship' ever since the Social Security trust began drawing down its fund reserves in 2021. The fund is filled with special issue securities that it presents to the Treasury for payment. Since we are already running a budget deficit, this payment is made possible by Treasury's issuing more debt. All the fund has done is add a step. This creates the illusion that, for now, the problem of payroll-tax revenues running below benefits payments is being dealt with. It isn't. The day after the fund runs out will be no different than the day before. Either way, more water will have flowed into the hull, thereby ushering in the day that the ship sinks.
David C. Rose
