Why Do Many Believe Social Security Is Going Broke?
It is because many politicians and financial advisers are telling them so. The claim that SS was going broke was part of the PR created to try to justify privatizing SS. Privatization would have been a boon to the financial services industry and money poured in for promotion and campaign donations. Privatization eventually failed, but the idea that SS was going broke has lived on. The theme that “SS is going broke” has now become a talking point used by unscrupulous politicians to blame political opponents, inspire fear, convince voters that the government isn’t working, or to justify changes to the system to benefit friends and donors. The theme is also a useful marketing tool for retirement funds who wish to convince potential customers that no matter how much money they have saved, they will eventually run out – unless they invest with them. Of course, a solvent SS ruins that argument. Won’t the Baby Boomers Use SS Up? No. There was a hike in the Social Security payroll tax in the 1
