Jeff Jacoby

Likewise, for all the talk of Social Security as an "entitlement," retirees have no ironclad right to that monthly check. "Congress can change the rules" whenever it wants to, the Social Security Administration's website acknowledges. "Benefits which are granted at one time can be withdrawn." That too was explicit in the law FDR signed in 1935. There are no "accrued property rights" in the Social Security system, the Supreme Court ruled in 1960. Payroll taxes withheld from your wages today don't confer on you a contractual right to benefits when you retire tomorrow.

Yet is it any wonder so many Americans believe the opposite? They have been assured for years that Social Security's considerable surpluses have been piling up in a trust fund worth about $2.6 trillion at last report. With assets like that, insist the status quo's defenders, there will be enough money to pay retirees' benefits for decades to come.

But the trust fund's assets are an illusion. Social Security doesn't own $2.6 trillion in gold bars or real estate or shares of Google. All it has are Treasury IOUs. Those IOUs represent $2.6 trillion that the government has already spent and promises to spend again. But in order to spend it again -- to redeem those IOUs -- Congress will have to raise taxes, cut spending, or go deeper into debt. Which is exactly what Congress would have to do if the Social Security trust fund didn't exist.

A US government bond is a sound and valuable asset -- for anyone but the US government. Just as you don't increase your wealth when you write yourself a check, the government cannot sock away $2.6 trillion by promising to pay itself $2.6 trillion. "The assets of the Social Security trust fund," the Congressional Budget Office has explained, "do not represent any real stock of resources set aside to pay for benefits in the future." The trust fund is a ledger entry, nothing more.

President Obama suggested in July that without a debt-ceiling increase, Social Security checks might not go out "because there may simply not be the money in the coffers to do it." Granted, he was playing political hardball. But he was also conceding the inescapable truth about Social Security's vaunted trust fund: It doesn't exist.

With the baby-boom generation beginning to retire, Social Security is projected to lose money every year from now on, beginning with a $45 billion shortfall this year. There is no trust-fund hoard to cover those losses. FDR's signature program is on a collision course with itself. My grandmother, may she rest in peace, may have believed it would last forever. My generation doesn't have that luxury.


Jeff Jacoby

Jeff Jacoby is an Op-Ed writer for the Boston Globe, a radio political commentator, and a contributing columnist for