Jesse: The trust fund is merely an accounting mechanism that says how much the trust fund can withdraw from the Treasury without an appropriation. The process is just like paying for battleships - pay as you go. When the Social Security interest was redeemed over the last 2 years, either expenses were reduced, more revenues were raised, or debt held by the public was increased. I'll take what's behind door number 3, thank you. If this was a real reserve, as an insurer has, the interest would have been liquidated without new money or new debt. The trust fund makes it no easier to pay benefits than if the trust fund did not exist. Don Levit
Jesse:
ReplyDeleteThe trust fund is merely an accounting mechanism that says how much the trust fund can withdraw from the Treasury without an appropriation. The process is just like paying for battleships - pay as you go.
When the Social Security interest was redeemed over the last 2 years, either expenses were reduced, more revenues were raised, or debt held by the public was increased.
I'll take what's behind door number 3, thank you.
If this was a real reserve, as an insurer has, the interest would have been liquidated without new money or new debt.
The trust fund makes it no easier to pay benefits than if the trust fund did not exist.
Don Levit