[Guest post by DRJ]
Michael Barone links and summarizes reports that show Social Security’s cash flow is in the red:
“Social Security tax receipts for the first half of 2010: $346.9 billion;
Social Security benefits payments for the same period: $347.3 billion.
Before this year, projections have always been that Social Security wouldn’t cross that line into negative cash flow for five years or so. Now it’s a reality. Congress has been spending Social Security’s positive cash flow for years. Now there’s no positive cash flow to spend.”
Compare that to last year:
“To see how the negative trend has accelerated, consider the same figures for the first half of 2009:
Social Security tax receipts were $366.0 billion and Social Security benefits payments were $334.3 billion.
A positive cash flow of $31.7 billion has disappeared in the course of just 12 months.”
More here, including a scary chart.