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by tuna-piano
3393 days ago
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Imagine 2 scenarios where social security needs $1B more than it has in revenue. Situation A, Social security trust fund as exists today-The trust fund redeems a bond from the US treasury. To get the $1B, the Treasury either raises taxes or takes out $1B in its own debt. Situation B, no trust fund- To get $1B, social security either raises taxes or takes out $1B in its own debt. The point is that you can call the trust fund an asset (something you have), but you then also need to call the money the federal government owes a liability. But the federal government hasn't accounted for it in this way. This is equivalent to John Doe writing a check for 2.8T to himself and saying he has a 2.8T asset (he does), but not mentioning he also has a 2.8T liability. https://www.forbes.com/sites/merrillmatthews/2011/07/13/what... |
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