Defaulting on the Social Security Trust Fund: What It Would Mean, and How It Would Be Done
Publication Date: March 2005
Publisher(s): Center for Economic and Policy Research
Author(s): Dean Baker
Keywords: Wealth redistribution; Tax revenues; Federal budget
Coverage: United States
Some policymakers have asserted that the Social Security program will begin to face serious problems in 2018. This paper shows that the date would only pose a problem if the U.S. government were to default on the bonds held by the Social Security trust fund.