The Sun Journal’s editorial Jan. 16 accused the president of trying to “stir up a crisis that doesn’t exist” regarding the insolvency of Social Security.

The Sun Journal paints a rosy picture of a system that cannot go bankrupt, as long as it pays benefits out at ever decreasing levels starting in 2042. I suspect that if anyone could make a mortgage payment at only about 70 percent of what’s scheduled, the lender would declare him bankrupt in a heartbeat.

However, the crisis begins much earlier than 2042. Social Security currently runs a surplus, which is held in the trust fund. Unfortunately the surplus is not held as cash. The government takes all the cash surplus and puts pieces of paper called Treasury bonds into the trust fund. It then uses the cash for everything from new aircraft carriers to buying toilet paper.

So what happens in 2018 when the surplus ends and the trust fund is needed to make Social Security payments? Well, first the government has to come up with the cash to replace those Treasury bonds (plus interest). From 2018 to 2041, the government has to come up with trillions for those bonds. Second, the government has to come up with billions or trillions more to make up for the cash that it can no longer loot from the trust fund. Tens of trillions to be raised from increased taxation, borrowing and cuts to programs.

The president is right to warn us of this crisis now.

Scott Gardner, Auburn

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