Kasz216 said:
Yes and no. It wasn't that the government took money out of the social security fund so much as it never put the money in the fund in the first place. Instead it was all used to buy government bonds which is all it was alowed to do by law. Which is exacty like me buying IOU's from myself to fund my retirment fund.
It's completely moronic.
If we didn't have people refusing to allow change in social security for decades we could of did what every other country who has such a pension fund does. We could of put that money in assets and stocks, and run a spurplus eaisly, as even during the GFC countries like Denmark made profits in the stock market.
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I just wanted to add to this ...
While we have substantial problems with our government, Canadians have had very good governments compared to many western countries for most of my life. In the mid 1990s we had a pay-as-you-go system (like the US) for the Canadian Pension Plan and it was calculated to go bankrupt in (roughly) 2015, and this inspired changes to the system that increased personal contributions and directed more money into actual investments. Today there are discussions about how increased life expectancy will impact the system, and there have been suggestions that the age people can collect will need to be raised, but there isn't the "social security crisis" with our pension plan that exists in the USA.
I don't really know why this happens, but there is an interesting dynamic difference between Canadian and American governments. For some reason Canadain governments are far more pragmatic and are willing to work to solve problems even if they're not the ideological ideal solutions.