5 ms·
No, in fact, it's not the same with bank deposits. Of course you don't get back the same dollar bills; frankly, that's an offensively specious false analogy. Bu
by rosser 13y ago
No, in fact, it's not the same with bank deposits. Of course you don't get back the same dollar bills; frankly, that's an offensively specious false analogy. But when you deposit money into a bank account, you still own that money; if you were to close your bank account tomorrow, you'd get a cheque for the balance.
Social Security, on the other hand, is a "pay as you go" program. When you contribute money into the Social Security trust fund, it is used to satisfy payments to current recipients. If it's still solvent and operating when you retire or become disabled, then you can expect to receive benefits similarly (though, technically, retirement/"old age" and disability benefits come from different funds).
Moreover, if the fund were to go insolvent — or Congress were to shut the program down — tomorrow, you would have no recourse. (Whereas with bank deposits, you have recourse at least up to the FDIC insured maximum.) If you renounce your US citizenship, or decide to fund your retirement yourself, you don't somehow magically get back the money you contributed, and you're still subject to payroll taxes in the latter case.
- pseut 13y agoI hope you enjoyed the irony of invoking the FDIC to justify why people "own" money that they've deposited in checking accounts as much as I enjoyed reading it. Banks used to shut down all the mfing time without making their depositors whole. The reason that's more or less stopped (in the US) is not because of some moral awakening that somehow missed the social security administration. It's because we regulate banks better. PS: congress is just as capable of shutting down the FDIC as the SSA
- prostoalex 13y ago> If it's still solvent and operating when you retire or become disabled, then you can expect to receive benefits similarly That's now how it works. The reason you get those annual pamphlets from Social Security Administration is to know exactly what you're entitled to. It's highly dependent on your rate and consistency of contributions. > or decide to fund your retirement yourself, you don't somehow magically get back the money you contributed Not sure what you're saying. When you reach proper age, you're entitled to Social Security payouts as long as you've contributed into the system the way that was intended. A lot of people fund their own retirements through 401(k), annuities or personal savings, that does not disqualify them from Social Security.