Embezzling Social Security to Fund Trickle-Down Economics & Billionaire Hobbies Like SpaceX

Social Security, the bedrock of retirement security for millions of Americans, is in a state of crisis. Congress’s continued use of it as a piggy bank for pet projects and tax cuts for the wealthy is a reckless behavior that must be addressed urgently. Before approving another tax break for the ultra-rich or funding billionaire escapades like SpaceX, lawmakers need to repay the trillions borrowed from Social Security—a debt they’ve ignored for decades.

Virtually all of Elon Musk's net worth can be pinned to government help. Tesla and SpaceX got started – and survived their early days – with assistance from state and federal policies, government contracts and loans.

The Great Social Security Heist

In 1983, during Ronald Reagan’s presidency, bipartisan reforms to Social Security established a surplus meant to shore up the program for future generations. This surplus, however, was funneled into the general fund to mask deficits and finance other government spending. This act, which we can now refer to as the Great Social Security Heist, has left the Social Security Trust Fund holding Treasury bonds that don’t pay benefits. Congress must redeem them to fulfill its promises.

At the same time, the lie of trickle-down economics was introduced, promising that tax cuts for the wealthy would benefit everyone. Instead, it concentrated wealth at the top and left working-class Americans grappling with stagnant wages and rising inequality. The diversion of Social Security funds and the implementation of trickle-down policies combined to form one of the most significant attacks on the American working class in history. These policies eroded retirement security and widened the wealth gap, ensuring that most Americans’ economic gains stayed out of reach.

"It’s nonsensical” to think that greater wealth for the rich translates to improved fortunes for everyone else. “Otherwise, we would not have observed such an obscene increase in the degree of income inequality that has restored the magnitude of levels that existed on the eve of the Great Depression,.” - William Darity, a professor of public policy at Duke University

Misplaced Priorities

The United States has a staggering national debt, yet Congress continually prioritizes tax cuts for billionaires and corporations, exacerbating income inequality. It’s time for a change in these priorities. Before approving any new tax cuts or billion-dollar subsidies, Congress must repay its debts to Social Security. This is not just a financial obligation but a moral one.

"Imagine a charismatic salesperson promising sky-high returns to early investors, only to use the money from new investors to pay them off. This is the infamous story of Charles Ponzi, whose name became synonymous with fraud. Now, consider the US Social Security system." - The Cato Institute

This mismanagement is not just unethical; it’s unsustainable. Every dollar borrowed from Social Security is a dollar stolen from future retirees. Yet, lawmakers claim we can’t “afford” to expand benefits or lower the retirement age. Social Security is running a surplus of $77 billion this year and amassing a trust fund large enough to last through the peak retirement years of the Baby Boomers.

"Gross interest will climb above $1 trillion this fiscal year, making interest the second largest expense in all of government. The Social Security trust fund runs out of money in nine years, setting in an automatic 25% cut in retirement benefits and risking the doubling of senior poverty if Congress continues down an unsustainable fiscal path." - Congressman David Scheikert, Republican, Arizona's 1st District.

The Real Solution

Before approving new tax cuts or billion-dollar subsidies, Congress must repay its debts to Social Security. This is not just a financial obligation but a moral one. According to data from the Economic Policy Institute, restoring these funds could significantly extend the program’s solvency and potentially enhance benefits for seniors who rely on Social Security as their primary source of income.

When the government collects more in FICA taxes than it pays out, as the OASI Trust Fund did for every year except one from 1984 through 2020, the surplus in the Trust Fund is used to purchase special, interest-bearing U.S. Treasury notes. Congress is then free to spend those funds however it chooses.

The Real Solution: Equitable Reforms for Social Security Before approving any new tax cuts or billion-dollar subsidies, Congress must repay its debts to Social Security. This is not just a financial obligation but a moral one. According to data from the Economic Policy Institute, restoring these funds could significantly extend the program’s solvency and potentially enhance benefits for seniors who rely on Social Security as their primary source of income. Instead of dangerous myths like privatization, we should explore equitable solutions like lifting the payroll tax cap, which currently exempts income above $160,200. This would ensure that high earners pay their fair share into the system.

A Call to Action

It’s time for voters to demand accountability. Social Security isn’t a handout; it’s a contract. Workers have paid into the system their entire lives, expecting those contributions to fund their retirement. Congress’s refusal to honor this commitment betrays every American who depends on these benefits.

The next time your representative advocates for tax cuts or corporate subsidies, ask them one question: Why should billionaires get richer while Social Security remains underfunded? If lawmakers can find trillions for tax breaks and private ventures, they can find the money to repay Social Security. Anything less is a dereliction of duty.

By prioritizing repayment to Social Security, Congress can restore faith in the program and ensure its survival for future generations. The time to act is now—before another dime is diverted to the whims of the wealthy.

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