I’ve heard that one several times from lefty commentators (Hartmann for example) - the money is “invested” in T-bills. Question I want to ask him is - when the SSA cashes in the T-bills to get the money to pay SS recipients - where does the money come from?
I have occasionally listened to him too , that is another big lie too.
A T-bill is a legal document that requires the govmt repay a investor, individual, corporation, mutual fund back principle and interest.
But a SS IOU is from the government to itself. There is no legal requirement to pay SS recipients beyond current spending law. Congress can and has and may cut those payments, or tax them more.
If congress was to pass a law negating T-bills repayment the Federal government could be sued by the investor. But we have no recourse, the SCOTUS long ago decided recipients are not legally entitled to SS.
SS IOUs are just worthless paper saying the government owes itself money. But those elected will never admit that.