Well, perhaps you're right. I am not a finance guy and it seems to me you can probably pull debt out of any kind of relationship if you squint right. But it certainly is not to blame for our inability to balance the budget, which seems easiest to explain with nearly sixty straight years of cutting marginal tax rates while claiming to be fiscally conservative.
jack_h|9 months ago
No, this is pretty explicit. To rephrase what the GAO said when the Social Security Administration takes in more than it sends out it invests the difference in special Treasury securities (that's the trust fund(s)). The money the Treasury gets is spent on general government operations (education, healthcare, etc). The treasure must pay this money back, with interest.
> But it certainly is not to blame for our inability to balance the budget
When the Treasury pays the principal and interest it needs to either have enough tax dollars (higher tax rates or spending cuts) or issue debt to the public. So yes, it does factor into a balanced budget. It still must be paid back and the taxpayer will foot the bill one way or another, now or in the future.
> which seems easiest to explain with nearly sixty straight years of cutting marginal tax rates while claiming to be fiscally conservative.
This is a gross oversimplification. If you think just one side is the issue you're not going to be able to fix the problem.
fkfyshroglk|9 months ago
And what is the other side, pray tell?
Don't worry, I gave up on this country's ability to fix any problem a long time ago.