The American Interest
Analysis by Walter Russell Mead & Staff
Social Security in the Red, Second Year Running

Here at Via Meadia, we’re considering a new pension plan for our interns. Here’s how it works: The interns put money in the pension lockbox. The staff then takes money out of that lockbox and uses it to pay for lunches. But don’t worry: for every penny taken out of the lockbox, VM will place a signed, interest-bearing I.O.U. back into the box. VM, of course, has never, ever failed to pay back its I.O.U.’s.

In other, completely unrelated news, the Congressional Budget Office is reporting that, for the second year running, Social Security paid out more than it took in last year. Outlays, says the CBO, exceeded revenue by 4 percent.

But there’s absolutely nothing to worry about. As the Wall Street Journal explains:

Many Democrats on Capitol Hill argue that Social Security isn’t in dire shape, in part because the program holds assets in special-issue U.S. Treasury securities.

In other words, no need to sound the alarm. We’re in fine shape, because our government’s obligations are 100 percent backed by… government obligations. Glad that’s all been cleared up.

Published on October 3, 2012 12:00 pm