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How can that be? Suppose our debt limit were hit. Law says we can't issue more debt; another law says we must pay social security. Until more taxes start rollin
by orijing 15y ago
How can that be? Suppose our debt limit were hit. Law says we can't issue more debt; another law says we must pay social security. Until more taxes start rolling in, we'd be breaking one law or the other.
- fauigerzigerk 15y agoThat's a very good question. In my view, it's simply incompetent, populist, law making. How can it be that a country can even have such a rule on the statute books without getting downgraded on the spot?
- mkr-hn 15y agoBecause it's been raised with minimal problems for the law's near century of existence.
- fauigerzigerk 15y agoGood point. I didn't know the rule was that old.
- yummyfajitas 15y agoNo, SS can be paid without affecting the debt ceiling. "By law the Treasury is bound to redeem any bonds presented to it by the Social Security Administration. And when the Treasury does, total government debt subject to the debt limit falls by the amount of the redemption—thus freeing up the Treasury's ability to issue new bonds equal in amount to the redeemed Trust Fund bonds." http://online.wsj.com/article/SB10001424053111903554904576458294273264416.html http://online.wsj.com/article/SB1000142405311190355490457645...