Yes, they’re coming for Social Security
During his campaign, Donald Trump “promised” not to touch Social Security and to veto and law that modified the program. That “promise” is about to be tested.
“Lee’s attack has four basic components. One is to bemoan the fact that Social Security is funded mostly by a tax, which he asserts the government can use for any purpose — not necessarily to cover retirement and disability benefits.”
Wrong. SS taxes can only be used to cover retirement and disability benefits. Lee is flat out lying here.
“Another is to point out that the program’s reserves aren’t stored in individual accounts with workers’ names on them, but collected in “a huge account called the ‘Social Security Trust Fund.'”
He’s correct here. Social Security is insurance and that’s how insurance works. Your premiums aren’t stored in individual accounts, they’re invested to make profits for the insurance company so that when you make a claim, there’s money to pay it. Same with Social Security.
“A third is to claim that “the government routinely raids this fund. … They take ‘your money’” and use it for whatever the current Congress deems ‘necessary.'”
He’s lying. Congress doesn’t “take” your money, it borrows it. Any funds in excess of the amounts transferred to current beneficiaries goes into the Trust Fund, which by law is invested in special treasuries that cannot be traded on the open market and that are backed by the full faith and credit of the US government.
“And a fourth is to complain that the trust fund is mismanaged: “If you had put the same amount into literally ANYTHING else — a mutual fund, real estate, even a savings account — you’d be better off by the time you reached retirement age, even if the government kept some of it!” He states: “Your ‘investment’ in Social Security can give you a return lower than inflation.””
This is specious. Social Security isn’t enforced investment, it’s insurance. And how much you get back depends on how much you put in and how long you live.
Look for Trump to repudiate Mike Lee and Elon Musk co-terminus with the first verified report of porcine aviation. I don’t know whether their plans to destroy Social Security will make it through Congress, but if they do, Trump *will* sign the bill.
Social Security in the GOP cross hairs
“Lee’s attack has four basic components. One is to bemoan the fact that Social Security is funded mostly by a tax, which he asserts the government can use for any purpose — not necessarily to cover retirement and disability benefits.”
Wrong. SS taxes can only be used to cover retirement and disability benefits. Lee is flat out lying here.
“Another is to point out that the program’s reserves aren’t stored in individual accounts with workers’ names on them, but collected in “a huge account called the ‘Social Security Trust Fund.'”
He’s correct here. Social Security is insurance and that’s how insurance works. Your premiums aren’t stored in individual accounts, they’re invested to make profits for the insurance company so that when you make a claim, there’s money to pay it. Same with Social Security.
“A third is to claim that “the government routinely raids this fund. … They take ‘your money’” and use it for whatever the current Congress deems ‘necessary.'”
He’s lying. Congress doesn’t “take” your money, it borrows it. Any funds in excess of the amounts transferred to current beneficiaries goes into the Trust Fund, which by law is invested in special treasuries that cannot be traded on the open market and that are backed by the full faith and credit of the US government.
“And a fourth is to complain that the trust fund is mismanaged: “If you had put the same amount into literally ANYTHING else — a mutual fund, real estate, even a savings account — you’d be better off by the time you reached retirement age, even if the government kept some of it!” He states: “Your ‘investment’ in Social Security can give you a return lower than inflation.””
This is specious. Social Security isn’t enforced investment, it’s insurance. And how much you get back depends on how much you put in and how long you live.
Look for Trump to repudiate Mike Lee and Elon Musk co-terminus with the first verified report of porcine aviation. I don’t know whether their plans to destroy Social Security will make it through Congress, but if they do, Trump *will* sign the bill.
Social Security in the GOP cross hairs
My view is that it is a negative indicator that SS Trust Fund invests in essentially non-negotiable Treasury debt. Better if its debt was marketable on par with the regular Treasury bonds. We think these have value because so far they have been redeemed (arguably with the proceeds of regular debt sales) but if in the future, Treasury says the won’t honor them -partially or completely – there would not be larger consequences to that decision. My view is the special nature of this debt makes them a second-class asset, with only provisional “full faith and credit “ backing.
“Better if its debt was marketable on par with the regular Treasury bonds.”
Why?
” . . .with only provisional “full faith and credit “ backing.”
LOL! You obviously know nothing about the federal government and borrowing. Learn about Article IV, section I of the US Constitution before posting here again.
@Joel,
I think you meant Sec 4 of the 14th Amendment.
@Jack,
Yes, that too. Both are in the Constitution, which, at least until the Roberts court was not considered “provisional.”