Originally Posted by James Brown
I'm no expert. But I think the following is true: There is no trust fund or "lock box" where money or gold bullion or anything else is set aside for SS. On the contrary SS proceeds go into the general fund. The funds get spent, and the Government owes the money back. Just like the money I have in the bank gets spent, and the bank owes it to me, when I ask. (I think, not sure) that a big chunk of the Governments total debt is unfunded SS and MC obligations.
I don't have a problem with the above, it is the way macro-economic nation-scale finance works. Right? (I'm no expert, correct me if I am wrong)
'08 and other recessions stress the system, but the government increases the debt limit to avoid default. Right? (I'm no expert, correct me if I am wrong)
If the shit really hits the fan, then the Government will have no choice but to default. A 1930s type depression maybe. Or actually losing WW3. Short of that I am a big believer in the system, as you know. That does not mean that I think the government can get away with increasing SS benefits at a whim. People live longer than they did in 1930. Some adjustments from time to time make sense.
"People live longer than they did in 1930. Some adjustments from time to time make sense. "
Well, in red states, that may not be a problem. Because, unless voters in such a state vote to expand medicaid/medicare access as they just did in one or two states, the general population succumbs earlier than their blue state counterparts...
And maybe, just maybe, corporate welfare, in forms of subsidies and tax breaks for big oil for example, need to be curtailed so the government can continue to fund the programs in question in conjunction with what those in the labor force already provide prior to their retirement...