3 Answers

It started with President Johnson. Usually all Social Security contributions are turned into Bonds. The congress has cashed these Bonds and exchanged it for IOU,s. .over the years. They use it for other programs, Right now there is nothing but IOU,s in the social security fund and they cant pay it back, because our Government does not have the money. The Government owes us that money, but we may never see it.

The social security official site says that The Social Security Trust Fund has never been "put into the general fund of the government."

Government labels this money for this and that money for that but it goes into one big bucket and spent as they see fit. All they do from time to time is to promises that they will fund this or that program. Much like you would put money away for a vacation then something comes up and you take the money out and give yourself an IOU for a vacation someday.