The truth about Social Security, Medicare and the budget

The claim by Republicans that Social Security and Medicare must be cut in order to reduce the budget deficit is a lie, full stop. FICA revenues are dedicated to the programs of Old Age, Survivors’ and Disability Insurance and cannot be used for any other purpose. The ‘unified’ budget that included SS and Medicare as part of the general fund is a fiction, and did not reduce the deficit, defined as the difference between annual appropriations and revenue authorized by Congress. It merely made the Trust Funds into major lenders to the Treasury, displacing some private purchases of Treasuries. The bonds held in the Trust Funds are a special issue and cannot be transferred; currently, bonds are being redeemed to supplement current revenues and maintain payments to beneficiaries, including the large cohort of baby boomers, as intended.