SS Trust Fund Irrelevant
Here's an article that sheds some light on the whole Social Security Trust Fund fiasco.
In fairly simple terms it states:
that's why the Trust Fund is irrelevant. To buy the bonds in the Trust Fund
from itself, the government must get the money from somewhere. It has four
options. It can reduce other government spending. It can sell assets. It can
increase taxes. Or, it can sell bonds. In other words, the Trust Fund has no
effect -- zero -- on the government's financial situation. Let's
make it more concrete with a personal situation that many people can relate to.
Say you're planning to send your kid to college. You have ten years and think
you need $100,000. In Scenario A, each year you put an IOU for $10,000 in a jar.
At the end of ten years, you pour out the jar, swear a bit more than is proper,
and then scramble to come up with $100,000, either through borrowing, selling
assets, earning more, or spending less. In Scenario B, you skip the jar and IOU
charade and advance to the final step: you swear and scramble. The IOU charade
That's easy enough to understand, isn't it? However, it doesn't change the fact that under the current system there is NO OWNERSHIP. Ol' BC has belabored this point and will continue to do so because it's critical for the working poor and their families to have a chance.
Just a thought.