[reaganator]

I am led to believe that currently the Social Security contributions coming in to the system are greater than the cost going out in benefit checks and administrative costs. That is what I am referring to as the surplus contributions continuing to be spent by Congress.

[Tell It Right]

Here's how I understand the way SS "surplus" contributions and Congress spending it works.

By law, the only thing the SS administrators can invest the SS fund in are U.S. treasuries. I wish they could invest in a large array of asset classes like I do my retirement portfolio, but they can't. So, I guess having the SS fund investing in U.S. treasuries is better than just a plain savings account.

By buying U.S. treasuries, that's how the SS administrators "hand over surplus money to Congress". Thus, it's not like Congress is directly raiding the SS fund. It's more like, in the early years of the SS fund investing in treasuries, Congresscritters used to market their extra spending by saying, "It helps the SS fund, doncha known, because the SS fund is the largest owner of US treasury debt, so if the Government doesn't have tons of debt through spending then the SS fund has nothing to invest in and blah blah blah blah".

By the way, over recent years I believe the Federal Reserve has surpassed the SS fund as being the largest owner of U.S. treasuries (largest owner of U.S. debt). I know we talk about China a lot, but they're the largest foreign owner of U.S. debt.

If I'm right, then it's a stretch to describe it as Congress raiding the SS fund. It'd be more accurate to describe it as Congress should keep spending so darn much. Also, they should let us have our SS account balances with some interest and let us save and invest that money as each of us darn well wants to.

[Thank You Rush]

“”I am led to believe that currently the Social Security contributions coming in to the system are greater than the cost going out in benefit checks and administrative costs.””

I wonder....I don’t know how that could be refuted..

Administrative costs could always rise - thanks to whoever is in charge - thus, those costs could eat up any surplus. If what you say is true, how long will it be before THEY figure that out? “Gee, the cost of administering those funds just overwhelms us.”

Are we jaded - skeptical? You bet and why wouldn’t we be? Our government has proven to be untrustworthy!!!! It’s not the way some or perhaps MOST of us at FR started out in life. We listened - now we are finding out that we’ve always been lied to - but probably not to the extent as we are now....