General Discussion
In reply to the discussion: Social Security has ZERO to do with the Deficit. [View all]Nye Bevan
(25,406 posts)If SS was simply part of the general fund (SS taxes go into the general fund, and benefits are paid out of the general fund) we would be wondering "how can the Govt pay the promised SS benefits".
But since the artificial accounting device of the "trust fund" exists, the question instead is "how can the Govt repay its debt to SS".
Which really is the same thing.
1. People have paid their SS taxes;
2. All that money has been spent on other stuff;
3. The Govt. has to figure out how to pay promised SS benefits in the future, when SS taxes being collected will be insufficient to do this.
Whether (3) is a question of "how can the Govt pay the promised SS benefits" or "how can the Govt repay its debt to SS" is a purely artificial distinction. One way or another, the money has to be raised. If it is borrowed, the deficit will indeed increase, which is why your claim that "Social Security has ZERO to do with the deficit" is incorrect. The other alternatives are to (1) reduce spending on other things, (2) raise taxes, (3) reduce future SS benefits or (4) print the money. This is basic economics, not "right-wing scare tactics".