Social Security

Watch this on Rumble: https://rumble.com/v6r9gwk-social-security.html

A listener sent me a MEME and some information about Social Security. It literally falls into the divide and conquer military memetic campaign to anger the right. For educational purposes, let’s read the claims and then go over the facts. Let’s also keep in mind that the facts could have been changed at any time which makes it harder for us to find the truth. I am not interested in bashing the Democratic Party and their objectives because it will lump all into one and that is not fair. But military memetics is real and this post most likely is designed to keep us uneducated and angry at the opposite party.

Claim: History Lesson on Your Social Security Card. Just in case some of you young whippersnappers (and some older ones) didn’t know this. It’s easy to check out, if you don’t believe it. Be sure and show it to your family and friends. They need a little history lesson on what’s what and it doesn’t matter whether you are Democrat or Republican. Facts are Facts. Social Security Cards up until the 1980s expressly stated the number and Card were not to be used for identification purposes. Since nearly everyone in the United States now has a number, it became convenient to use it anyway and the message, NOT FOR IDENTIFICATION was removed. An old Social Security card with the “NOT FOR IDENTIFICATION” message. Our Social Security Franklin Roosevelt, a Democrat, introduced the Social Security (FICA) Program. He promised:

1) That participation in the Program would be completely voluntary,

No longer Voluntary

2) That the participants would only have to pay

1% of the first $1,400 of their annual incomes into the Program,

Now 7.65% On the first $90,000

3) That the money the participants elected to put

into the Program would be deductible from their income for tax purposes each year,

No longer tax deductible

4) That the money the participants put in went to the

Independent ‘Trust Fund’ rather than into the General Operating Fund, and therefore, would only be used to fund the Social Security Retirement Program, and no other Government program, and,

Under Johnson the money was moved to The General Fund and spent.

5) That the annuity payments to the retirees would never be taxed as income.

Under Clinton & Gore up to 85% of your Social Security can be taxed. Since many of us have paid into FICA for years and are now receiving a Social Security check every month — and then finding that we are getting taxed on 85% of the money we paid to the Federal government to put away – you may be interested in the following:

0: Which Political Party took Social Security from the

Independent ‘Trust Fund’ and put it into the General Fund so that Congress could spend it?

A: It was Lyndon Johnson and the Democratically

controlled House and Senate.

Q: Which Political Party eliminated the income tax

deduction for Social Security (FICA) withholding?

A: The Democratic Party.

Q: Which Political Party started taxing Social Security annuities?

A: The Democratic Party with Al Gore casting the

‘tie-breaking’ deciding vote as President of the Senate, while he was Vice President of the U.S

Q: Which Political Party decided to start giving annuity payments to immigrants?

(AND MY FAVORITE):

A: That’s right!

Jimmy Carter and the Democratic Party. Immigrants moved into this country, and at age 65, began to receive Social Security payments! The Democratic Party gave these payments to them, even though they never paid a dime into it! Then, after violating the original contract (FICA), the Democrats turn around and tell you that the Republicans want to take your Social Security away! And the worst part about it is uninformed citizens believe it!

The forward above was originally posted on X and it blames the Democratic Party heavily, so let’s see if there is any truth in this. And remember, history can be re-written to hide foul play.

“NOT FOR IDENTIFICATION” Message:

TRUE – According to SSA’s official history, Social Security cards did indeed bear the legend “For Social Security Purposes Not For Identification.”

Voluntary Participation Claim:

FALSE – The program was never voluntary. According to SSA History, the 1935 Act provided compulsory coverage for workers in commerce and industry, covering about 6 in 10 jobs initially.

Trust Fund/General Fund Claim:

FALSE – According to SSA’s Myths page, “The Social Security Trust Fund has never been ‘put into the general fund of the government.'” This directly contradicts the claim about Johnson moving the money.

Immigration Benefits Claim:

MISLEADING – The rules for non-citizens receiving Social Security are complex and require them to have worked and paid into the system. They cannot simply arrive and collect benefits at 65 without contributing.

Tax Status Changes:

PARTIALLY TRUE – Social Security benefits did become partially taxable under the 1983 amendments, which passed with bipartisan support. According to SSA, up to 50% of benefits could be taxed if total income exceeded certain thresholds.

Original Tax Rate:

TRUE – The initial tax rate was indeed very low compared to today’s rates, though this was always planned to increase over time as the program matured.

The Dark Side of America’s Social Contract: A History of Broken Promises and Hidden Truths

In the depths of the Great Depression, President Franklin D. Roosevelt made a promise to the American people. Social Security would be their shield against the ravages of poverty in old age, a sacred covenant between government and citizen. But like many government promises, the reality would prove far more complex—and in some cases, far darker—than anyone could have imagined.

The Birth of a Promise: 1935

When Roosevelt signed the Social Security Act on August 14, 1935, he painted a picture of security and stability for America’s elderly. The program began collecting its first taxes in January 1937, with workers and employers each paying one percent of the first $3,000 in wages and salary, as noted by the National Academy of Social Insurance. But even then, the seeds of future controversies were being planted.

The Hidden Truth About Your “Rights”

Perhaps the most shocking revelation about Social Security came in 1960, when the Supreme Court made a ruling that would forever change how Americans should view their benefits. In Flemming v. Nestor, the Court determined that Americans have no legal right to their Social Security benefits, even after paying into the system for decades. The case involved Ephram Nestor, who had paid Social Security taxes for 19 years before being deported for his past Communist Party membership. When Congress retroactively terminated his benefits, the Supreme Court upheld the action, establishing that Social Security benefits are not property rights but merely political privileges that Congress can revoke at any time.

The Trust Fund Myth

One of the most persistent controversies surrounding Social Security involves the program’s Trust Fund. Contrary to popular belief and viral social media claims, the Social Security Administration maintains that the Trust Fund was never “put into the general fund of the government.” However, this technical truth masks a more complex reality: while the Trust Fund remains separate on paper, the government has borrowed from it extensively, replacing the money with special Treasury bonds.

The Privatization Wars

The 1980s and 1990s saw the emergence of a new battle over Social Security’s future. Following Chile’s dramatic privatization of its social security system in 1981, American conservatives began pushing for similar reforms. As reported by Northwest Labor Press, the Cato Institute formed its Project on Social Security Privatization in 1995, bringing in José Piñera, the architect of Chile’s privatization, to pitch similar ideas to American lawmakers.

The battle reached its peak under President George W. Bush, who launched a major initiative to partially privatize the system through personal accounts. The plan would have allowed Americans to divert a portion of their Social Security taxes into private investments—a proposal that ultimately failed but revealed deep ideological divisions about the program’s future.

The Disability Program Scandal

While most Americans focus on retirement benefits, Social Security’s disability program has faced its own shocking scandals. In one of the largest Social Security fraud cases in history, a former administrative law judge pleaded guilty to their role in a $550 million disability fraud scheme. The case exposed deep vulnerabilities in the system meant to help America’s most vulnerable citizens.

Broken Promises: The Taxation Saga

One of the most significant betrayals of Social Security’s original promises involves the taxation of benefits. When the program began, Americans were assured their benefits would never be taxed. This promise held until 1983, when Congress passed amendments allowing up to 50% of benefits to be taxed under certain conditions. The situation worsened in 1993, when the taxable portion was increased up to 85% for some beneficiaries, as documented by the Social Security Administration’s own historical records.

The Immigration Controversy

While viral messages often claim that immigrants can simply arrive and collect benefits at age 65, the reality is more nuanced. Non-citizens must meet strict requirements and have worked and paid into the system to receive benefits. However, this hasn’t stopped the issue from becoming a political football, with various administrations proposing changes to immigrant eligibility rules.

The Modern Crisis

Today, Social Security faces its greatest challenge yet: demographic reality. With fewer workers supporting more retirees, the program’s financial stability is increasingly precarious. Recent projections suggest the Trust Fund could be depleted by the 2030s, forcing either benefit cuts or tax increases.

The Tech Billionaire Factor

In a surprising twist for 2025, tech billionaires have entered the Social Security debate. Recent claims of massive fraud by figures like Elon Musk have added a new dimension to the ongoing debate about the program’s future, though these allegations conflict with extensive audits of the agency’s spending.

The Future: More Broken Promises?

As we look toward the future, Social Security stands at a crossroads. The program that promised to be America’s shield against elderly poverty has become a complex web of political compromises, broken promises, and ongoing debates. While it continues to provide crucial support to millions of Americans, the gap between its original promises and current reality serves as a stark reminder of how government programs can evolve—or devolve—over time.

The question now isn’t whether more changes will come—they must, given demographic realities—but whether future modifications will further erode the original promise of Social Security or find a way to restore the program’s founding principles. As new generations of Americans enter the workforce, they do so under a social contract very different from the one their grandparents knew, raising profound questions about the nature of government promises and the future of American social insurance.

What remains clear is that Social Security’s history is not just a story of retirement security, but a complex tale of political maneuvering, broken promises, and the ongoing challenge of maintaining a massive social program in a changing world. Understanding this history—both its triumphs and its betrayals—is crucial for anyone seeking to understand where the program might head next.

The Invisible Hands: Who Really Manages America’s Social Security?

When most Americans think about Social Security, they imagine a government program untouched by corporate interests. The reality is far more complex—a labyrinth of government management, potential corporate influence, and ongoing debates about the future of retirement security in the United States.

At its core, the Social Security trust fund is managed by the Department of the Treasury, a fact that might surprise those who believe private companies are secretly pulling the strings. By law, these funds are invested exclusively in U.S. Treasury securities, guaranteed by the full faith and credit of the federal government. This means every dollar paid into the system isn’t sitting idle, but generating modest returns through government bonds—a system both conservative and predictable.

Yet beneath this straightforward facade lies a world of intricate corporate involvement and political maneuvering. Companies like BlackRock, while not directly managing the Social Security trust fund, have become increasingly vocal about potential reforms. Larry Fink, BlackRock’s CEO, has repeatedly proposed linking Social Security to private investments, suggesting the current system fails to keep pace with economic growth. His arguments hint at a broader corporate interest in reimagining how retirement funds are managed and invested.

The scale of these funds is staggering. As of 2021, the Social Security Trust Fund contained approximately $2.908 trillion—a sum large enough to attract significant attention from financial institutions and political strategists. This massive pool of money has been the subject of numerous privatization attempts, most notably during President George W. Bush’s administration in 2005, when he proposed allowing Americans to divert portions of their payroll taxes into private investment accounts.

International precedents exist for such radical restructuring. Chile became the first country to fully privatize its social security system in 1981, creating a model that conservative policymakers have long admired. The United States has flirted with similar ideas, though robust public resistance has consistently thwarted complete privatization efforts. Each attempt reveals deep ideological divides about the fundamental purpose of social insurance.

The current system relies on a complex network of contractors and support services. The Social Security Administration’s Office of Acquisition and Grants manages numerous contracts supporting the agency’s technological and operational infrastructure. While these contractors don’t directly manage investment funds, they play crucial roles in maintaining the system’s functionality.

Looking toward the future, the landscape appears increasingly uncertain. The Social Security Board of Trustees has forecast that the trust funds could become insolvent by 2035—a prediction that virtually guarantees significant reforms in the coming decade. This impending crisis creates a perfect environment for more aggressive proposals from corporate leaders and policy entrepreneurs.

Recent developments add further intrigue to the narrative. In a surprising 2025 move, Fiserv’s CEO Frank Bisignano was nominated to potentially serve as Social Security commissioner—a nomination that could signal potential systemic changes. Meanwhile, BlackRock continues to manage pension assets for approximately half of U.S. public school teachers, demonstrating the company’s significant influence in retirement investment strategies.

Conspiracy theories often paint a picture of shadowy corporate takeovers of Social Security. The actual story is both more mundane and more complex—a delicate balance between government oversight, corporate interests, and the fundamental social contract that promises economic security for aging Americans. As demographic shifts continue to challenge the system’s sustainability, the management of Social Security represents a critical battleground in debates about retirement, economic policy, and the role of government in citizens’ financial lives.

The next decade will likely determine whether Social Security remains a government-managed social insurance program or transforms into something more market-driven. Corporate leaders, policy makers, and millions of working Americans all have a stake in this unfolding drama—a story of money, promise, and the ongoing negotiation of economic security in the United States.

The Hidden Truth: How Social Security Funds Are Really Invested

When most Americans imagine the Social Security Trust Fund, they picture a massive piggy bank filled with cash, ready to support retirees. The reality is far more complex and, in many ways, more abstract. The fund is not a traditional investment account, but a carefully controlled financial instrument with strict legal limitations on how its money can be used.

By federal law, the Social Security Trust Fund is permitted to invest in only one type of financial instrument: United States Treasury securities. These are not typical loans or investments that everyday Americans might recognize. Instead, they are special government-issued debt instruments that essentially represent the government borrowing money from itself. There are two specific categories of these securities: special issues, which are available exclusively to the trust funds, and public issues, which are marketable Treasury bonds accessible to other investors.

The legal restrictions on these investments are remarkably precise. Every single dollar collected through payroll taxes must be invested in securities that are guaranteed both in principal and interest by the federal government. This means the Social Security Administration cannot make loans, cannot invest in private companies, and cannot engage in any form of speculative investment. The Social Security Act itself prohibits “prefunding” through alternative investment strategies, ensuring that the funds remain as conservative and predictable as possible.

Interestingly, this system functions almost like an internal government accounting mechanism. The Treasury issues special securities to the Social Security Trust Fund, which then earn interest. These are not traditional loans in any sense, but rather a complex financial dance where one part of the government (the Treasury) borrows from another part (the Social Security Administration) while guaranteeing full repayment.

The Cato Institute colorfully describes this arrangement as a “figurative piggy bank” that holds nothing more than IOUs issued by the Treasury. While this might sound alarming, it’s actually a carefully designed system meant to ensure the stability and predictability of Social Security funds. The government is, in essence, lending to itself, with strict rules about repayment and interest.

This investment strategy means that the Social Security Trust Fund does not participate in the stock market, does not invest in private businesses, and does not make any external loans. Its sole purpose is to hold Treasury securities, earning a modest but guaranteed return that helps support the ongoing payment of retirement, disability, and survivor benefits.

As of 2023, the average interest rate on these securities was around 2.387 percent, providing a steady, if not spectacular, return. This approach prioritizes security and predictability over potential higher returns that might come from more aggressive investment strategies. For millions of Americans depending on these benefits, that stability is precisely the point.

The future of this system remains uncertain. With demographic shifts putting increasing pressure on Social Security, there are ongoing debates about whether these investment restrictions should be modified. Some argue for allowing more diverse investments to increase returns, while others maintain that the current system’s conservative approach is its greatest strength.

Understanding these intricate financial mechanisms reveals the complex machinery behind Social Security—a system that is simultaneously a social promise, a government program, and a carefully managed financial instrument. It’s a testament to the delicate balance between providing for citizens’ economic security and maintaining fiscal responsibility.

The elites, corporate interests and political vultures have been circling this huge fund which surpasses most countries’ GDP. The landscape of Social Security in 2025 is fraught with political tension, as a significant portion of Republican lawmakers quietly maneuver to reshape the decades-old safety net. At the heart of this potential transformation is the Republican Study Committee, an influential group representing nearly 80% of House Republicans. Their proposed budget plans aren’t just minor adjustments — they represent a fundamental reimagining of Social Security that could dramatically reduce benefits for millions of Americans. Yet the meme above blames democrats?

Leading the charge are politicians like Senator Rand Paul from Kentucky, who has been vocal about demanding comprehensive Social Security reforms. His proposals typically center on gradually raising the retirement age, a strategy that sounds bureaucratic but carries profound human consequences. By extending the time workers must labor before receiving full benefits, these proposed changes would effectively cut lifetime earnings for countless Americans who have paid into the system for decades.

The most visible — and perhaps most controversial — figure in this debate is actually not a politician at all, but entrepreneur Elon Musk. His repeated characterization of Social Security as a “Ponzi scheme” has sparked intense political debate. Interestingly, even some Senate Republicans have become uncomfortable with Musk’s public statements, recognizing the potential political damage such rhetoric could cause. Despite this pushback, Musk’s comments have amplified existing conservative arguments about the program’s sustainability.

Donald Trump represents a particularly complex element in this political landscape. While he has publicly claimed he would protect Social Security, the policy blueprint known as Project 2025 — closely associated with his potential return to office — tells a different story. The project proposes increasing the retirement age in a way that would effectively cut benefits for nearly 75% of Americans. These aren’t minor tweaks, but substantial changes that could fundamentally alter retirement security for an entire generation.

Counterbalancing these threats are progressive politicians like Bernie Sanders, Elizabeth Warren, and their colleagues. They are not just defending Social Security but actively pushing legislation to expand the program. Their approach stands in stark contrast to the conservative narrative, arguing that Social Security should be strengthened, not dismantled. They point to the program’s critical role in providing economic stability for millions of retired and disabled Americans.

The most alarming aspect of this potential restructuring is its potential human impact. Analyses from the Center on Budget and Policy Priorities suggest these proposed changes could create “significant economic and health insecurity” for millions. We’re not talking about abstract policy — these are real changes that could push vulnerable populations closer to poverty.

What makes this moment particularly dangerous is the lack of transparency. As one Republican lawmaker candidly admitted, politicians on Capitol Hill are “not being honest” when they claim they won’t touch Social Security. This admission reveals a political environment where the true intentions are often masked behind reassuring rhetoric.

For millions of Americans, Social Security is more than a government program — it’s a lifeline. It’s the difference between dignified retirement and financial desperation. As political maneuvering continues, the stakes could not be higher. The decisions made in the next few years will determine the economic security of generations of Americans who have paid into this system their entire working lives. Politically, the biggest threat to social security now are private corporations and republicans. What a turn of events for a meme that posted all the blame on the problems of social security towards democrats. When in reality, if we really dig deep, the left and right are playing good cop bad cop. Two wings of the same bird. Right now, the democrats are the bad guys. This shift happens every 10 – 20 years while nothing really gets done except for our debt increases.

Sources:

Joey dark 2 Light (@joeydark2Light) on X

Joey dark 2 Light (@joeydark2Light) on X

Investment Types and Restrictions:

Center on Budget and Policy Priorities: Understanding Social Security Trust Funds

Social Security Administration: Trust Fund FAQs

Wikipedia: Social Security Trust Fund

Social Security Administration: Special Investment Issues

Legal Restrictions:

Social Security Administration Policy Document

Congressional Research Service Report

Cato Institute Policy Analysis

Historical and Academic Sources:

Cornell University Research

American Enterprise Institute Paper on Social Investing

Science Direct: Social Security Trust Fund Equity Investments

Interest Rate and Financial Performance:

Social Security Administration: Trust Fund Data

Additional Context Sources:

Investopedia: How Social Security Trust Fund is Invested

Tax Policy Center: Social Security Trust Funds Financing

Academic Papers:

1. “Full Funding: The Future of Social Security” – HeinOnline
2. “Thinking about Social Security’s Trust Fund” – University of Pennsylvania Repository
3. “Should the Social Security Trust Fund Hold Equities?” – Review of Economic Dynamics

Primary Sources:

1. Social Security Administration. (2023). Trust Fund Data. https://www.ssa.gov/oact/progdata/fundFAQ.html
2. Center on Budget and Policy Priorities. (2023). Understanding the Social Security Trust Funds. https://www.cbpp.org/research/social-security/understanding-the-social-security-trust-funds-0

Academic Sources:

1. Bohn, H. (1999). Should the social security trust fund hold equities? An intergenerational welfare analysis. Review of Economic Dynamics, 2(3), 423-455.
2. Templin, B. A. (2006). Full funding: The future of social security. Journal of Law and Politics, 22, 345-378.
3. Nuschler, D., & Sidor, G. (2013). Social security: The trust fund. Cornell University Research Repository.

Government and Policy Research:

1. Congressional Research Service. (2023). Social Security Trust Fund Investment Practices. RL33028.
2. Cato Institute. (2022). The social security trust fund myth. Policy Analysis, 854, 1-24.

Legal and Policy Journals:

1. Rounds, C. E. (2005). Why social investing threatens public pension funds, charitable trusts, and the social security trust fund. American Enterprise Institute.
2. Smetters, K. A. (1997). Thinking about social security’s trust fund. University of Pennsylvania Working Paper.