Xequecal wrote:
So when the Social Security Administration says on their website that payments will be reduced when the trust fund is exhausted, they're just flat out lying? Several Trustees Reports and an open letter to Congress all claim that this will occur.
Yes, they're lying, Xequecal. You trust government reports? That's a mistake in its own right. Social Security payments began weeks after the initial bill was passed. The last President to post a confirmed surplus in Social Security revenues was Dwight Eisenhower. Social Security revenues have been insufficient for in year payments since the Clinton Administration.
Xequecal wrote:
Social Security does not generate public debt. The government borrowing money from Social Security to pay for other spending does not constitute SS generating debt. The government could have borrowed that money from somewhere else if SS hadn't existed. Also, just because the trust fund consists of Treasury bonds does not mean it doesn't exist. Those bonds have value, despite what conservatives love to claim. People still want to buy US government debt, and thus the bonds are still valuable. "We borrow money to pay the interest on loans we don't need because we're paying social security." is a complete bullshit statement, the only way this is true is if the payroll tax somehow continues to exist while Social Security doesn't. In the past, the income from the payroll tax exceeded outgoing payments, so the trust fund built up. Today, the income is less than outgoing payments, so the trust fund is being depleted. At no point did the government ever have to borrow any money to make SS payments. Other than changes to the economy caused by less taxes on those working and by retired persons not receiving the income, if SS was abolished tomorrow, (the program AND the payroll tax) the government would be borrowing exactly the same amount of money to pay its bills that it does now.
The government would be borrowing less money to pay its bills, as Social Security payments exceed the revenues generated by its payroll tax and have for decades. It's not a bullshit statement, incidentally, since Clinton side a bill putting Social Security taxes in the general fund, by the way.
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