---

 [ ARCHIVE ](https://www.citywatchla.com/index.php?option=com_content&view=category&id=16)

#  Don’t Buy Lies About Social Security

January 28 2013

Written by Dave Zweifel.

<a class="a2a_button_facebook"></a><a class="a2a_button_twitter"></a><a class="a2a_button_email"></a><a class="a2a_button_print"></a>[](https://www.addtoany.com/share)

![](https://www.citywatchla.com/images/stories/Jan-2013/cw11009r.png)NATION’S DEBT - Let’s be brutally frank today: The claim by some of those Wall Street money changers and politicians like Wisconsin’s own Paul Ryan and many of his Republican colleagues that Social Security is contributing to the national debt and therefore needs to be “fixed” is nothing more than an outright lie.

Because the late President Franklin D. Roosevelt wanted to make sure that the Social Security Trust Fund was protected from the ever-changing political winds, it was set up as a separate self-financed system that gets its revenues from three sources — roughly 80 percent from the payroll tax of 6.2 percent for both the employee and employer (the 6.2 was reduced to 4.2 for employees to help provide relief during the recession and went back to 6.2 percent on Jan. 1), another 15 percent from interest earned by the trust fund, and the other 5 percent from taxes that Social Security recipients wind up paying at income tax time.

In Social Security’s 75-year history, it has collected $15.5 trillion and currently has $2.6 trillion in the bank, enough money to pay full benefits until about 2037.

It cannot borrow, but the government itself can borrow from it and always does. The Social Security Trust Fund currently holds roughly 18 percent of the federal government’s debt, twice as much as China, the country’s Republicans like to claim is holding our debt. Former Michigan Sen. Donald Riegle, who believes the government ought to repay Social Security, has pointed out that President George W. Bush borrowed heavily from the trust fund to mask the budget costs of his two wars and the tax reductions he engineered in his first term.

And now it’s the congressional Republicans and Wall Street financiers who are spreading the lie that we can’t tackle the national debt problem without changing Social Security.

In a recent op-ed, Riegle named Wall Street insider Pete Peterson as a leading advocate of this lie. He has dedicated a billion dollars of his fortune to destroy the system as we know it.

“Peterson is joined in his efforts by other wealthy special interests that have much to gain if Social Security is cut or eliminated,” the retired senator said. “The same Wall Street firms that needed the taxpayers to bail them out — and individuals like Peterson who took advantage of a tax loophole that enabled him to pay taxes on his Wall Street profits at the same rate as a janitor cleaning his office — are conducting a massive lobbying campaign to reduce Social Security protections” by claiming it’s a way to lower the deficit.

In fact, Riegle points out, Wall Street ought to be reimbursing the system for the money it lost when workers lost their jobs and interest rates plummeted thanks to the reckless behavior of Wall Street banks and other financiers.

“Social Security did not create the economic problem or the budget deficit,” he adds. “Wall Street and other government spending did. But the opponents of Social Security don’t want to pay back all the money that was borrowed from Social Security. Instead they want to cut Social Security benefits.”

That, of course, would be a hard hit for millions of older Americans, many of whom rely on Social Security to keep them out of poverty. And all for the benefit of those who least need it, but are willing to lie to get it.

*(Dave Zweifel is editor emeritus of [The Capital Times](http://host.madison.com/ct/news/opinion/column/dave_zweifel/plain-talk-don-t-buy-lies-about-social-security/article_7a127b1a-6666-11e2-ba59-0019bb2963f4.html%20) where this column was first posted.)*

*-cw*

Tags: Dave Zweifel, social security, lies, Wall Street, Roosevelt

CityWatch

Vol 11 Issue 9

Pub: Jan 29, 2013

 [ ![benzinga ad](https://www.citywatchla.com/images/ADS%20FOR%202026/benzinga%20headlines%20350.png) ](https://www.citywatchla.com/component/banners/click/106 "benzinga ad")

 [ ![save up to 4000 on used evs](https://www.citywatchla.com/images/LADWP/dwp%20ev%20ad2.png) ](https://www.citywatchla.com/component/banners/click/107 "LA DWP | Save $4K, Green | Priority Ad")

 [ ![Donna Tryfman](https://www.citywatchla.com/images/ADS%20FOR%202026/Donna-Tryfman-Ad-Final-Complete-Border-White-Margin.png) ](https://www.citywatchla.com/component/banners/click/98 "Donna Tryfman - HS1-1")

 [ ![LA DWP #2 (Pay Your Bill Help)](https://www.citywatchla.com/images/LADWP/dwp%20level%20pay%205-7-25.jpg) ](https://www.citywatchla.com/component/banners/click/82 "LA DWP #2 (Pay Your Bill Help)")

 [ ![David DeJute Campaign](https://www.citywatchla.com/images/ADS%20FOR%202026/DejuteAd.png) ](https://www.citywatchla.com/component/banners/click/111 "David DeJute Campaign")

 [ ![Pay Water Bill Help](https://www.citywatchla.com/images/LADWP/dwp%20-%20cares-ad.jpg) ](https://www.citywatchla.com/component/banners/click/97 "Home - LA DWP #2 (Pay Water Bill Help)")

 ![](https://www.citywatchla.com/images/banners/signup-for-cw.png)

## Get The News In Your Email Inbox Mondays &amp; Thursdays

 Last Name

 ---

##  Featured CityWatch Stories

 [ ![](https://www.citywatchla.com/media/yootheme/cache/1c/072d-1c016ddf.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33319:when-the-last-minute-power-play-failed-sacramento-finally-ran-out-of-time&catid=375)

### [When the Last-Minute Power Play Failed: Sacramento Finally Ran Out of Time](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33319:when-the-last-minute-power-play-failed-sacramento-finally-ran-out-of-time&catid=375)

MY THOUGHTS - Gavin Newsom came to the final days of his final regular legislative session with one more major problem…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/88/071n-88bb0b90.png) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33300:follow-the-money-how-does-a-3-662-apartment-become-affordable-housing&catid=312)

### [Follow the Money: How Does a $3,662 Apartment Become “Affordable Housing”?](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33300:follow-the-money-how-does-a-3-662-apartment-become-affordable-housing&catid=312)

INVESTIGATIVE ANALYSIS - ED 1 Is Redeveloping Los Angeles—One Neighborhood at a Time You know that persistent, annoyin…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/4b/070i-4ba64015.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33283:newsoms-next-immigration-gamble-defy-federal-law-and-dare-washington-to-fight-back&catid=375)

### [Newsom’s Next Immigration Gamble: Defy Federal Law And Dare Washington To Fight Back](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33283:newsoms-next-immigration-gamble-defy-federal-law-and-dare-washington-to-fight-back&catid=375)

MY THOUGHTS - Gov. Gavin Newsom is about to decide whether California should take another extraordinary gamble with fed…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/44/071d-441a7ed2.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33308:as-california-debated-sharing-data-on-drivers-homeland-security-subpoenaed-17-million-records&catid=425)

### [As California Debated Sharing Data On Drivers, Homeland Security Subpoenaed 17 Million Records](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33308:as-california-debated-sharing-data-on-drivers-homeland-security-subpoenaed-17-million-records&catid=425)

TECHNOLOGY - California lawmakers wrestled with a difficult question earlier this summer: Could the state safely share…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/1a/071i-1a9188c0.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33304:l-a-s-unlimited-political-money-pipeline-when-public-officials-become-fundraisers-for-powerful-interests&catid=401)

### [L.A.’s Unlimited Political Money Pipeline: When Public Officials Become Fundraisers for Powerful Interests](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33304:l-a-s-unlimited-political-money-pipeline-when-public-officials-become-fundraisers-for-powerful-interests&catid=401)

THE BOTTOM LINE - Los Angeles limits campaign contributions, restricts gifts to public officials and requires financial…

---

##  [ ARCHIVE ](https://www.citywatchla.com/index.php?option=com_content&view=category&id=16)

 [ ![](https://www.citywatchla.com/images/stories/Apr-2018/034e.png) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=15339:early-intervention-and-jobs-are-key-to-stemming-chronic-homelessness-in-los-angeles&catid=16)### [Early Intervention and Jobs are Key to Stemming Chronic Homelessness in Los Angeles](https://www.citywatchla.com/index.php?option=com_content&view=article&id=15339:early-intervention-and-jobs-are-key-to-stemming-chronic-homelessness-in-los-angeles&catid=16)

### [Tucker Carlson and Gay Rightwinger Blame California Wildfires On Hiring LGBTQ People](https://www.citywatchla.com/index.php?option=com_content&view=article&id=18755:tucker-carlson-and-gay-rightwinger-blame-california-wildfires-on-hiring-lgbtq-people&catid=16)

### [Anti-LGBTQ Veep Just Can’t Stop Talking about Mayor Pete](https://www.citywatchla.com/index.php?option=com_content&view=article&id=17690:anti-lgbtq-veep-just-can-t-stop-talking-about-mayor-pete&catid=16)

 [ ![](https://www.citywatchla.com/images/stories/Apr-2018/033j.png) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=15316:news-pulse-corrupt-system-reason-for-not-voting-in-2018-majority-wants-more-than-two-parties&catid=16)### [NEWS PULSE: ‘Corrupt System’ Reason for Not Voting in 2018 … Majority Wants More Than Two Parties](https://www.citywatchla.com/index.php?option=com_content&view=article&id=15316:news-pulse-corrupt-system-reason-for-not-voting-in-2018-majority-wants-more-than-two-parties&catid=16)

 [ ![](https://www.citywatchla.com/images/stories/Jan-2016/1404d.png) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=10245:dead-dog-set-on-fire-sparks-fears-for-strays-in-los-angeles&catid=16)### [Dead Dog Set on Fire … Sparks Fears for Strays in Los Angeles](https://www.citywatchla.com/index.php?option=com_content&view=article&id=10245:dead-dog-set-on-fire-sparks-fears-for-strays-in-los-angeles&catid=16)
<div data-id="1" 
	class="eb-inst eb-hide eb-emailform eb-1 eboxContentLocker"
	data-options='{"trigger":"onPageLoad","trigger_selector":"","delay":3000,"early_trigger":true,"scroll_depth":"percentage","scroll_depth_value":80,"firing_frequency":1,"reverse_scroll_close":true,"threshold":0,"close_out_viewport":false,"exit_timer":1000,"idle_time":10000,"close_on_esc":false,"animation_open":"slideInDown","animation_close":"fadeOutDown","animation_duration":400,"disable_page_scroll":true,"test_mode":false,"debug":false,"ga_tracking":true,"ga_tracking_id":"G-P16BQ7X1SW","ga_tracking_event_category":"EngageBox","ga_tracking_event_label":"Box #1 - Global Email Signup Form","auto_focus":false}'
	data-type='popup'
	>

	<button type="button" data-ebox-cmd="close" class="eb-close placement-outside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>
	<div class="eb-dialog eb-formVer" role="dialog" aria-modal="true" id="dialog1" aria-label="dialog1">
		
		<button type="button" data-ebox-cmd="close" class="eb-close placement-inside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>	
		<div class="eb-container">
						<div class="eb-content">
				
<form action="https://citywatchla.us2.list-manage.com/subscribe/post?u=34d69f33624fd058ee9b56516&amp;id=4bfa422f51&amp;f_id=00d6c2e1f0" class="eb" method="post" id="mcform-1" name="mcform-1" target="_blank">
			<div class="eb-form-header"><p><img src="/images/2023/06/be-a-city-watcher.png" alt="be a city watcher" width="350" height="97" loading="lazy" data-path="local-images:/2023/06/be-a-city-watcher.png"></p>
<p>Sign up to receive our special e-news blasts on Monday and Thursday evenings!</p></div>
	
					<div class="eb-field-row">

			
			
			
			<input class="eb-input" type="email" name="EMAIL"  placeholder="Email address"  id="EMAIL" value="" required>

			
		</div>
										
	<div class="eb-footer">
    	<button class="eb-btn" type="submit" name="subscribe" style="background-color:rgba(93, 183, 93, 1);color:rgba(255, 255, 255, 1)">
    		Sign up    	</button>
    </div>
</form>			</div>
		</div>
	</div>	
</div>
<div data-id="3" 
	class="eb-inst eb-hide eb-yesno eb-3 "
	data-options='{"trigger":"onScrollDepth","trigger_selector":"","delay":0,"early_trigger":false,"scroll_depth":"percentage","scroll_depth_value":80,"firing_frequency":2,"reverse_scroll_close":false,"threshold":0,"close_out_viewport":false,"exit_timer":1000,"idle_time":1000,"close_on_esc":false,"animation_open":"fadeInUp","animation_close":"fadeOut","animation_duration":300,"disable_page_scroll":false,"test_mode":false,"debug":false,"ga_tracking":true,"ga_tracking_id":"G-P16BQ7X1SW","ga_tracking_event_category":"EngageBox","ga_tracking_event_label":"Box #3 - Yes \/ No Donation Popup Box","auto_focus":false}'
	data-type='popup'
	>

	<button type="button" data-ebox-cmd="close" class="eb-close placement-outside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>
	<div class="eb-dialog " role="dialog" aria-modal="true" id="dialog3" aria-label="dialog3">
		
		<button type="button" data-ebox-cmd="close" class="eb-close placement-inside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>	
		<div class="eb-container">
						<div class="eb-content">
				
<div class="ebox-yes-no">
	<div class="ebox-yn-text">
		
		
		<div class="ebox-yn-headline" style="font-size:22px;color:#888888">
			<p>If you only give once a month, would you consider giving to CityWatch?</p>
<p>Your support fuels our mission to promote and facilitate civic engagement and neighborhood empowerment, and to hold area government and its politicians accountable.</p>
<p>Would you like to help? Even if you can only give $5, it will make a difference.</p>		</div>
			</div>
	
	<div class="ebox-ys-buttons" style="font-size: 16px;">
		
<a
					data-ebox-prevent="0"
		data-ebox-cmd="close"
				target="_self"
		href="https://www.citywatchla.com/donate"
		rel="noopener"
	
	
	
	
	class="ebox-ys-btn"
	style="background-color:#2ec664;color:#ffffff;min-width:100px">
	Yes
	</a>
<a
	
	
			data-ebox-cmd="close"
		href="#"
	
	
	class="ebox-ys-btn"
	style="background-color:#ef2345;color:#ffffff;min-width:100px">
	Not Right Now
	</a>	</div>

	</div>			</div>
		</div>
	</div>	
</div>