4 ms·

This is circular logic.

• AnthonyMouse 8y ago
  It isn't. The "trust fund" is an accounting trick to create something from nothing. Suppose there isn't enough money in the "trust fund" and we wanted to add some without raising taxes, reducing spending or issuing any new bonds into the market (which would consume liquidity and raise interest rates). Simple, you write some new bonds and give them directly to the social security administration. Now it has "more assets" -- but you haven't actually funded anything because you have an equal amount of debt.