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Social security and Medicare aren't self funded, that's the problem.
by valuearb 10y ago
Social security and Medicare aren't self funded, that's the problem.
- phkahler 10y agoSocial security is for the most part. The problem is that they were required to invest the fund in treasury bonds, which mean congress "borrowed" them money and spent it. As the boomers retire and get their due, that money will have to be paid back. But congress will see that as a budget shortfall and complain about some "entitlement program".
- catawbasam 10y agoNo, social security is running an actuarial deficit. The older generation, which is already richer than the general population, is extracting money at an unsustainable rate.
- phkahler 10y agoThey are redeeming their bonds. The government spent the surplus on other things and issued IOUs to the SSA. Now they're just pissed that they're being called on to pay it back. This is not really a debate - Alan Greenspan even said these bonds are real assets of the fund.