The Great Social Security Heist

The Great Social Security Heist
Great Social Security Heist
The Big Lie
Allen W. Smith, Ph.D.
The Looting of Social Security
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On September 27, 2000, Dr. Allen W. Smith appeared on the CNN afternoon news to discuss his newly published book, The Alleged Budget Surplus, Social Security and Voodoo Economics.  This marked the beginning of of Smith's fifteen-year-long campaign to alert the public to the fact that the government was taking money from Social Security, depositing it into the general fund, and then using the revenue for other purposes, as if it were general revenue from the income tax.  The money taken from Social Security was replaced with non-marketable government IOUs, that could not be used to pay benefits, and could not be sold,or in any other way, converted to cash.  Smith thought that once he reported that the government was embezzling Social Security money and spending it for other things, there would be a public outcry, and the looting would come to an end.  But that did not happen. The government continued to keep the big dirty secret from the public.

On February 25, 2004, Alan  Greenspan launched a verbal bombshell which set off anger, and some degree of panic, throughout the nation.  He called for cutting Social Security benefits for future retirees because, in his words, "We are over committed  at this stage.  It is important that we tell the people who are about to retire what it is they will have."  Dr. Smith was furious over Greenspan's double-crossing of the baby boomers.  Greenspan had helped President Reagan push the payroll tax hike of 1983 through Congress, which was supposed to provide enough surplus revenue to fully fund the retirement of the baby boomers.   Twenty-one years later, after two decades of government embezzlement of Social Security funds, Greenspan was pretending that the surplus revenue had never existed and advocating cutting Social Security benefits to future retirees who had already prepaid the cost of their own benefits. The following day, Dr. Smith was one of two invited guests to respond to Greenspan on the CNBC morning news.  That interview was recorded and is the second video below. 

A month later, on March 22, 2004, Smith was interviewed by "The Dollans" on CNNfn.  This interview makes up the third video in the series below.  By viewing the videos, you will see that Allen W. Smith was making the same arguments in 2004 as he made in his 2000 interview on CNN.  Ten years later, as we enter 2014, Dr. Smith continues his effort to expose the great Social Security theft.  But the Social Security program is in much deeper trouble today than ever before.  The last surplus year was 2009.  In 2010, Social Security transitioned from 30 years of annual surpluses to permanent deficits.  The cost of paying full benefits in 2010 exceeded Social Security revenue by $49 billion.  The government had to borrow $49 billion from China, or one of our other creditors, in order to pay full benefits in 2010.  The deficits will become larger and larger in the years ahead, meaning that unless their are benefit cuts or tax increases, the government will have to borrow more and more for Social Security.  This is not possible without large increases in the debt ceiling, which seems unlikely in the current political climate.  The only thing Social Security has is its annual tax revenue.  It does not have a bunch of money stashed away that it can draw down.  All of the $2.7 trillion that is alleged to be in the trust fund is gone.  It has been spent for other purposes.  Yet. government officials and the AARP continue to tell the public that Social Security has enough money to pay benefits for 20 more years.  These statements are deliberate lies to try to keep the big dirty secret from becoming public knowledge. The government does not even have enough money to pay full benefits in 2014, without borrowing money.     

View video of three Social Security interviews with Dr. Allen W. Smith on national TV



Mainstream Media Outlets Have Been Reluctant to Report a Story Which the Government has Kept Secret from the Public for 30 Years 

 I have  continued my relentless campaign to expose the Social Security theft to this day, using any media outlets that were available.  The looting of the Social Security surplus is sometimes reported on editorial pages, but it never makes it into the mainstream news.  For that to happen, the President of the United States, or perhaps the Secretary of the Treasury, would have to hold a press conference, or issue a press release, stating specifically that all the Social Security surplus had been spent for other purposes, leaving the trust fund without any current liquid assets.

Although specific members of Congress have stated publicly that Social Security has no reserve money, these statements are never widely reported by the mainstream media.  On March 16, 2011, Senator Tom Coburn (R-OK) made the following statement during a Senate speech:   "Congresses under both Republican and Democratic control have stolen money from Social Security and spent it.  The money's gone.  It's been used for another purpose." On October 6, 2013, House speaker John Boehner said on ABC television, "It's not like there is money in Social Security...The government, over the last 30 years has spent it all."  Such statements would have been headline news during the Watergate era, when reporters engaged in active investigative reporting.  But there is little investigative reporting today.  When Dan Rather, a highly respected Journalist, was fired because he reported a story that the White House did not want reported, a powerful message was sent to every journalist in America.  If they valued job security, they had better be careful not to report anything the government did not want reported. Talk radio is still an area where almost anything can be discussed, and I have done more than 200 radio interviews. I have also appeared on a few local TV stations where daring investigative reporters try to cover the news not being covered by the mainstream media.  


On June  2, 2011, I appeared on WTSP, Channel 10, in Tampa.  Investigative reporter Mike Deeson interviewed me and also showed a clip from Senator Coburn's statement on the stealing of Social Security money.  It was a daring report of the true status of Social Security, and Mike tried to get it carried by as many other stations as possible.  Please click on the link below to view the Tampa video.  

View video of WTSP investigative reporter, Mike Deeson's interview with Allen W. Smith