Yeah, the suggestions for fixing SS tend to involve raising taxes, raising the retirement age, and reducing benefits for wealthy people. I’m a bit skeptical of raising the payroll tax, but it’s fairly minimal.
One of the things that is mentioned there though, is the SS Trust Fund. This is always, to me at least, one of the most hilariously absurd scams in the history of government finance. The problem described in that first article is that by 2030, the trust fund will have no more money left in it. I feel the need to point out that the trust fund ALREADY has no money in it.
To be clear, the “Trust Fund” was a savings account made up from SS surpluses over the past decades. SS was pulling in more money than it was paying out, so they put it in this “trust fund”. But the kicker comes from recognition of what exactly is in the fund now.
See, the government took that money, and then bought US Government bonds with that money, and put the bonds into the fund. There is literally a binder somewhere which is holding a few government bonds which literally are worth trillions of dollars each.
But when you start to consider what that actually means, it becomes absurd.
So the US government took that money, and then loaned it TO ITSELF, by purchasing bonds from itself. Then it put those bonds into a binder, and spent the money on other shit. This would be like if you earned 100 dollars, wrote an IOU to yourself on a napkin, put the napkin in your wallet, and then spent the hundred dollars on hookers and blow… And then called your wallet your “trust fund”.
It’s not a trust fund though. It’s, literally, just debt.
In order to collect money to pay out to SS from the fund, the US government needs to cash in those bonds… But since the bonds are from itself, it means that the US government has to pay the money when they cash them in. So It’s literally EXACTLY the same as if that trust fund didn’t exist AT ALL. Every dollar that comes out of the trust fund is just dollars of revenue that are listed in the huge $450 billion chunk of the budget dedicated to “servicing the debt”.
The fact that so few people ever talk about this aspect, and how ridiculous it is, is kind of frightening.