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In reply to the discussion: Ultra Low Interest Rates A Threat To Social Security [View all]Taitertots
(7,745 posts)50. "Lent and spent". It's gone. Every penny comes from increased taxes
The obligations exist whether or not the trust exist. The funds to pay those obligations comes from increased taxes (or decreased services) either way.
The trust is an accounting fiction to shift the tax burden onto working class Americans.
Money is fungible. The SS obligations are unchanged. The funding source for those obligations is unchanged. It's trivial to discuss whether the interest rate is high enough when every penny comes from new taxes (and/or austerity).
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From previous reports. Just because they're not online does not mean they do not exist.
jeff47
Mar 2016
#41
Well, yeah Congress can always amend the SS Act. But until they do that, it's pretty much a market
Hoyt
Mar 2016
#28
I think they have driven rates down in the hopes of spurring job creating business.
Hoyt
Mar 2016
#29
And it hasn't worked well because of other issues that only Congress, not the Fed, can address.
strategery blunder
Mar 2016
#47
Agreed. Allowing giant banks to borrow money for free from the taxpayers without no requirement
GoneFishin
Mar 2016
#51