What does Social Security have to do with the Deficit?


I think I know the answer to this, but I thought it might help others if we brought in a trusted figure so that we could be certain that we’ve nailed this down.  With that, I present to you our former president, Ronald Reagan.

President Reagan, what does Social Security have to do with the deficit?

Thank you Mr. President, but I’m still a bit fuzzy on the particulars. I thought you said that if we reduced Social Security benefits, that we’d be able to use those funds to reduce the deficit.  Could you go over that bit again, sir?

My fault entirely mister president.  I had this completely confused.  I now understand that Social Security does not contribute to the deficit as it is a stand alone fund that is contributed to separately from the general tax fund.  Thank you for clearing that up, sir.  I feel better knowing how Social Security is funded and that it is not contributing to the deficit.

I have one more question Mr. President.

Could you tell me if defense spending contributes to the deficit?

flickr/DonkeyHotey

The source for the video and therefore the impetus for the post came from here.