How much has been raided from Social Security, and what has been the effect?
As of the end of 1997, $655.5 billion has been borrowed (not “raided”) and invested in government securities, backed by the full faith and credit of the U.S. Government. These investments are required under law to have maturities fixed with due regard to the needs of the Social Security trust funds. When the investments reach their maturity date, the federal government must pay them off. It can do this, as it does with other privately held securities, by reducing costs of the government budget, financing the obligation with new borrowing, or raising taxes.
