Social security trust lost $2 billion, Proxmire claims
Washington — The financially troubled Social Security Trust Fund lost $2 billion in earnings last year because of poor investment management, Sen. William Proxmire charges. He gave his monthly "Golden Fleece" award to the Treasury Department managers. The Wisconsin Democrat says their investment policies prevented higher return on the $47 billion investment portfolio in 1980.
"While private money managers earned 13 percent interest on their investments in 1980, the Treasury managers earned only 8.3 percent interest," Mr. Proxmire says. He notes that the lost earnings occurred at the same time the social security trustees said benefits had to be cut or taxes raised.