The Ghost of RubangB said: Hey Clinton did it with his huge social security surplus before Bush showed up and spent it at a candy store. |
Actually i'm pretty sure there has never been a social security lock box.
Whenever social security has a suprlus the government uses that money to buy IOUs from itself in the form of US securties. Then spends that money elsewhere. Those securities being able to be redeemed later when running a deficit with interest.
Bush, when he dipped into social security was really just cashing in to IOUs that the government owned itself... so he wouldn't have to write more IOUs and technically it would be deficit nuetral because money in the Social Security Trust fund is counted on the national debt already.
Yep I'm right... from the Socia Security trust fund fact page by the government.
"As stated above, money flowing into the trust funds is invested in U. S. Government securities. Because the government spends this borrowed cash, some people see the current increase in the trust fund assets as an accumulation of securities that the government will be unable to make good on in the future. Without legislation to restore long-range solvency of the trust funds, redemption of long-term securities prior to maturity would be necessary.
Far from being "worthless IOUs," the investments held by the trust funds are backed by the full faith and credit of the U. S. Government. The government has always repaid Social Security, with interest. The special-issue securities are, therefore, just as safe as U.S. Savings Bonds or other financial instruments of the Federal government.
Many options are being considered to restore long-range trust fund solvency. These options are being considered now, over 25 years in advance of the year the funds are likely to be exhausted. It is thus likely that legislation will be enacted to restore long-term solvency, making it unlikely that the trust funds' securities will need to be redeemed on a large scale prior to maturity.
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