Quote:
Originally Posted by Danzig
yes, it does. i know with the convoluted accounting practices the gov uses that it's argued it doesn't, but it really does. we pay less in than will be taken out. then there's the iou's.
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Right, but that is money that has been lent out to the government. If we're saying that that money was a gift, not a loan, then we're saying the US government isn't good for its debts, in which case we're really screwed.
It's not convoluted accounting- SS, thanks to the changes instituted by Reagan and Tip O'Neill's Congress back in, what, 1982? 1983?, started running a surplus, which was then LENT to the government's general operations funds, via purchasing Treasury bonds. SS, if I understand, is required to lend out surpluses so that it can generate interest on the surpluses and contribute to its stability. Now, admittedly, the changes were instituted with the intent of creating a surplus so that they could justify slashing taxes on the wealthy, but it still is a loan, not a gift.
Fun fact- much like the Bush tax cuts, the big Reagan tax cuts on the wealthy were also supposed to be temporary- Greenspan said they'd be okay for about 30 years, and then taxes would have to go back up on the wealthy because the low tax rate wouldn't be sustainable. Aaaannd... let's see..... 30 years from 1982 would bring us to when?
Social Security contributes to the deficit only if you think the USA isn't good for its debts. Otherwise, SS taking in less money than it pays out is actually good for the US, as it requires the US to pay back some of the money borrowed from SS, and that actually reduces our debt.