When congress borrows and spends, it's borrowing and spending regardless of whether it is borrowing from SSA or China. Depending on what Congress spends money on, and whether it will help our economy or not, it may or may not be an investment. Most of the spending now, is not an investment.
To SSA it IS an investment. U.S. Treasuries are still the safest investment in the world. If SSA was an independent agency no one could say that it's not an investment.
That SSA is not an independent agency, does not change the fact, that SSA must still put the money somewhere. The choices are limited.
- They can put cash in a lock box and watch it eaten by inflation.
- They can invest in the U.S. Treasuries and be certain that they will bet the cash plus interest back, though they can't be certain the interest will be sufficient to maintain purchasing power.
- They can invest in securities issued by other less trustworthy governments.
- They can invest in stock with it's ups and downs.
- They can invest in debt from corporations, though corporations spend the money as fast as they borrow it too. And they default, which the U.S. won't, if only because the U.S. can print money.
- They can buy $1800/oz gold in hopes that it's not the top of the bubble ala 1980 again.
Unless you got a better idea, treasuries are the appropriate place for SSA funds.
These facts are true:
- The economy only produces X goods at any given time.
- Y workers produce those X goods.
- E elderly people consume goods, but they don't produce.
- Y workers have got to produce enough to provide for the needs of both Y and E.
This is true whether or not:
- E has saved their own funds to spend on the goods Y produces.
- Or government has saved E's funds for them and doles it out.
- Or government spent E's funds and now has to tax Y to give E's funds back.
- Or neither government or elderly saves funds and government taxes Y to provide for E that is now indigent.
The problem isn't SSA or what SSA invests in. The only two problems are
- that government spends too much, which really has nothing to do with SSA.
- And that old people are a drain on the production of young workers. Which isn't really a problem just a fact. And about which nothing can be done, except ensure that the best economic environment for young workers to produce is maintained, and that the best environment for families is maintained.