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The trust fund is an accounting fiction. Social Security is paid out entirely by proceeds from people paying into the system. If ever the number of new people
by readams 10y ago
The trust fund is an accounting fiction.
Social Security is paid out entirely by proceeds from people paying into the system. If ever the number of new people paying in is not enough to cover the outflows, then the system collapses. That is how a Ponzi scheme works.
- awinder 10y agoThis is fake news.
- vkou 10y agoOr, the inflows are increased, or the outflows are decreased. All of which can be done with a stroke of a pen. If, for instance, we get rid of the contribution cap tomorrow, Social Security becomes 100% funded - in perpetuity. Madoff was in no position to do so. Congress is.
- jessaustin 10y agoMercedes dealers and developers of luxury apartments in Singapore, London, etc. would love this.