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> Now, it is true that the Social Security system then holds "assets" in exchange for that cash, namely, government bonds. But this is just accounting fiction.
by dminor 16y ago
> Now, it is true that the Social Security system then holds "assets" in exchange for that cash, namely, government bonds. But this is just accounting fiction.
No, there's no fiction - legally it must be paid back. That's why Social Security debt is included in the gross national debt.
- dminor 16y ago9 misconceptions about Social Security: http://www.theatlantic.com/past/docs/issues/98jul/socsec.htm http://www.theatlantic.com/past/docs/issues/98jul/socsec.htm The first addresses the "accounting fiction" aspect.