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Registered
Join Date: Apr 2002
Location: Houston (Clearlake), TX
Posts: 11,334
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Now we're getting off topic, but... I never understood people keep saying the government stole money out of social security.
Social security is a pay as you go system. What comes in through taxes, goes out as payments. If there is money left over, a surplus if you will, which is what started happening under Reagan as a way to get ready for all the baby boomers retiring, the money has to go somewhere. That somewhere is US Treasury bonds. So yes the surplus money leaves the Social Security account but it's replaced with bonds. So there is no stealing of Social Security funds by other branches of government.
What people may be referring to is Congress and others in government may have seen this surplus in the US Treasury and decided to spend it. They didn't spend the Social Security money because that's in bonds, they spent the US Treasury's money which will have to borrowed when Social Security starts cashing in the bonds.
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Last edited by David; 02-16-2018 at 07:50 AM..
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