Allen W. Smith, Ph.D.

Allen W. Smith, Ph.D.

Allen W. Smith was a professor of economics at Eastern Illinois University for 30 years.

The Looting of Social Security: The So-Called Trust Fund “Bonds”

The Social Security Amendments of 1983 included a hefty payroll tax hike that was designed to generate large Social Security surpluses for about 30 years. These surpluses were supposed to be saved and invested in marketable U.S. Treasury bonds, which could later be resold to finance benefits for the baby boomers. The author says this has not happened and points to some examples.

The Looting of Social Security: Pre-taxing the Baby Boomers

On April 20, 1983, one of the most significant developments in the history of Social Security legislation took place with great fanfare. It was the signing ceremony for the Social Security Amendments of 1983, which President Ronald Reagan called landmark legislation. The author says it laid the foundation for what was to become one of the greatest frauds ever perpetrated against Americans by the government.

No Money in the Social Security Trust Fund

There would be no Social Security funding problem for at least the next 25 years, if the government had not raided the trust fund. If the trust fund held the $2.5 trillion of surplus Social Security revenue, in the form of real marketable bonds, as it should, it could continue to pay full Social Security benefits until at least 2037.