Breathe easy seniors, Obama Social Security claims false:
President Obama is trying to play political “trump card” on the government shutdown: using threats to Social Security benefits.
Despite the partial government shutdown, Social Security benefits continue to flow. That’s because Social Security, as an “entitlement” doesn’t depend upon the annual Congressional appropriations.
But not so fast, the president said: If we don’t raise the debt ceiling — they don’t go out on time.
Wrong Again! Here the president is referring not to the current shutdown but to the fight over raising the debt ceiling. So if the government can’t borrow, the president says, it won’t be able to pay out Social Security retirement or disability benefits.
Not true. The federal debt ceiling applies to two kinds of debt: publicly-held debt (like China) and intragovernmental debt trust funds.
If Social Security isn’t drawing enough taxes to pay the benefits it owes then the program can redeem some of the bonds held in "their" trust fund. This reduces federal debt subject to the debt ceiling, so does not apply. Programs "without a trust fund" however don’t have this luxury.
Now, the President’s advisors told him how the law works so why would he still make those comments to seniors?