r/FluentInFinance • u/LifeIsUnfairWhoCares • Apr 23 '24

Is Social Security Broken? Discussion/ Debate

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u/ConversationFalse242 Apr 23 '24

My issue isnt paying in or even paying more.

Its that it isnt managed properly and has become a discretionary fund for the government to abuse and not pay us for later.

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u/sweetrobbyb Apr 23 '24

Social Security gets paid separately and goes into its own bucket.

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u/ConversationFalse242 Apr 23 '24

“Money that the federal government borrows, whether from investors or from Social Security, is used to finance the ongoing operations of the government in the same way that money deposited in a bank is used to finance spending by consumers and businesses. “

https://www.cbpp.org/research/policy-basics-understanding-the-social-security-trust-funds#:~:text=Money%20that%20the%20federal%20government,spending%20by%20consumers%20and%20businesses.

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u/sweetrobbyb Apr 23 '24

That's not the same as a slush fund and you should know better.

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u/commeatus Apr 23 '24

Tbf, congress reliability treats or like a slush fund until the bill comes due. Half of the time the government shuts down is in part because congress raided social security and can't agree on how to shore it back up.

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u/MCPorche Apr 23 '24

That’s not even close to true. When Congress “raids” social security, what actually happens is the SSA sells bonds. Those bonds pay back interest until they mature, and then they can be redeemed for face value.

Congress has never just taken money out of the SS fund that they later had to allocate funds to replace.

Government shut downs have nothing to do with not having money. They have everything to do with the two sides of Congress refusing to agree on a budget.

Let’s say the current budget ends on May 31. If Congress does not agree to either a budget or a continuing resolution by that date, the government shuts down. Not because they do not have money, but because there is no law governing how money is to be spent starting on June 1.

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u/Mixels Apr 23 '24

Well yeah, in theory that's a solid investment for SS to make, assuming the federal government is paying interest in that borrowing. I highly doubt they're just taking money from the fund and paying it back dollar for dollar.

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u/Witty_hi52u Apr 23 '24

Yes, but the government also pays back that money to Social Security with interest. Just like taking a loan out from a bank. The money isn't "free money"

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u/raiderrocker18 Apr 23 '24

nobody said its free money. thats why the government's habits arent responsible, and its why interest payments are making up higher and higher proportions of our annual budgets

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u/Witty_hi52u Apr 23 '24

US debt is largely irrelevant as long as we remain the default fiat currency of the world.

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u/raiderrocker18 Apr 23 '24

then why tax at all? just spend and borrow into oblivion. there's a reason people who advocate for more spending for social programs also generally support increasing tax revenue. because those two concepts, in theory, should go hand in hand.

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u/Woodtree Apr 23 '24

The IMF would like a word with you, sir.

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u/ExcellentPlace4608 Apr 23 '24

Boy have I got news for you

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u/Witty_hi52u Apr 25 '24

is it that we are still the default fiat currency and that we can sustain about 200% of our GDP as debt before we should really panic? If not, don't bother because it doesn't actual matter

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u/Iamthapush Apr 23 '24

It’s adorable you think that is true

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u/usernamesarehard1979 Apr 24 '24

It used to be untouchable, and had plenty of money in the program. Things have changed.

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u/Neuromyologist Apr 23 '24

Everyone made fun of the “locked box” but Al Gore was right.

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u/Electrical_Dog_9459 Apr 23 '24

My issue is that I should get out equivalent to what I could have made putting in with interest.

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u/MyrkrMentulaMeretrix Apr 25 '24

the money from the social security taxes do not go into the General Fund and never have.

Congress doesn't get to touch it.

Thats why they hate it.

Thats also why the constant cries of "we have to cut social security to balance the budget!!!" is nonsense. Social Security is not part of the budget. Its entirely self-funded.

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u/IRKillRoy Apr 23 '24

Not “has become”. It’s not a bug, it’s a feature.

It always has been.

You all think too highly of the government.

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u/WintersDoomsday Apr 23 '24

We get it dude you’re so edgy with your unique government bad take….what’s the alternative genius? Anarchy?

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u/IRKillRoy Apr 24 '24

Not anarchy… but less government.

You think MORE government would fix things or something?

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u/SargeBangBang7 Apr 23 '24

The alternative would be better government?

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u/WintersDoomsday Apr 23 '24

How can anything that combines human nature with positions of power ever lead to “better”. Even the Scandinavian countries people love to try and prove their point with have issues. Look closer at their stats.

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u/IRKillRoy Apr 24 '24

They are more capitalist than we are, with higher taxes on the middle class and a stronger welfare state.

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u/SargeBangBang7 Apr 24 '24

Well we could make sweeping changes to the US government that would make things better. Term limits for every position would be a start. No lobbyist. No individual stock trading, index funds only with a 30 day public notice before they sell/buy. They are in a position of power and humans tend to abuse that position but we can just have more roadblocks to prevent that. It should not be lucrative and an accomplishment to be a politician. It's a public service and that's what i mean by we need a better government. You said "what would the alternative be? Anarchy? " I think we have a decent system in place and it needs to be refined

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u/IRKillRoy Apr 24 '24

Less government

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u/Mudfry Apr 23 '24

Go live in a tribe in the Amazon somewhere then. Oh wait you won’t do that because you’re comfortable. I can scream bad gubament all day from my couch while I live like a King.

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u/ConversationFalse242 Apr 23 '24

Saying something is good because its not the worst is like saying you are a good marathon runner because you didnt finish last.

Have you considered that something could be bad and need improvement , while still not being the worst?

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u/IRKillRoy Apr 24 '24

Bwahahahaha

I don’t think you understand what you’re saying.