[[Well in this case the loan interest is being paid to the SS Administration because they have been loaning excess funds out.]]
I’m not sure the money does come with interest charges when ‘borrowed’ from SS- I could be wrong though- but even if it is, it’s still not what can be gained with direct investments- and there’s the issue of the government having to pay back the loans from other countries, and again them money comes from somewhere- it’s always a game of robbing peter to pay paul
[[They aren’t doing any borrowing that I am aware of.]]
I believe the govnemernt has to borrow from other countries to pay back what they ‘borrow’ from SS
“I’m not sure the money does come with interest charges when ‘borrowed’ from SS’”
SSA gets interest when they loan excess funds to another agency.
” but even if it is, it’s still not what can be gained with direct investments-”
Again, direct investments in what? Gov’t agencies can’t be buying equity in companies. That makes them a part owner and requires them to vote on directors, potential takeovers, proxy battles. A real can of worms. Equities also take a back seat to bonds in the event of a bankruptcy which is another big reason that gov’t agencies can only buy debt- SS administrators are fiduciaries and cannot risk the money they manage. And companies can go bankrupt. Gov’t agencies can’t.
Investing SS money sounds easy until you start looking at how you would go about doing it. It isn’t easy for even a large mutual fund to invest because their sheer size affects the market they are investing in. Multiply that problem exponentially and you’d have an idea of what investing SSA money would be like.