The coalition bases its case on the idea that Social Security is actually in fine fiscal shape, since it has amassed a pile of Treasury Bills — often referred to as i.o.u.’s — in a dedicated trust fund. This is true enough, except that the only way for the government to actually make good on these i.o.u.’s is to issue mountains of new debt or to take the money from elsewhere in the federal budget, or perhaps impose significant tax increases — none of which seem like especially practical options for the long term. So this is sort of like saying that you’re rich because your friend has promised to give you 10 million bucks just as soon as he wins the lottery.
No: it’s like saying you’re rich because you have ten million bucks in Treasury bonds.
What would Bai prefer the Social Security Trust Fund invest in, Cuban cigar futures? Timeshares in Greece?
The finances of SS are just fine, thank you. And no matter how you juggle the money, the consumption of every retired generation is produced by those who are working at the time. Either you are willing to pony up for the geezers or you aren’t. Matt is apparently a catfood kind of guy.