In all fairness, they were told it was being invested in Government bonds. What they weren’t told is that they Government bonds than couldn’t be bought or sold.
Sure, but even if those bonds were marketable, they would still have to pay the principle and interest to the private owners so where's the gain? It's still paid off by taxation at some point.
It's all academic though at this point.
The candidates are talking, as are the people, and even many folks on this site, as if we can put in some multi-year reform where those over 45 will get their checks but somehow those under will not have to pay full price.
It can't happen. Take a look at what's going on in the world. There's so much debt out there, both public and private and the world financial system so fragile, we could wake up, maybe even some day this week, where it all comes down.
Some day, sooner rather than later, you could wake up one morning, pop on the news and see bond yields shooting to the moon. And it's a way different world than 1980. We're a debtor nation now. That's a whole different ball game.
What's going to happen in if we have another downturn, and tax receipts dive again?
It, or Medicare, or both, are going to have to become a means-tested programs and soon. It's not a matter of ideology, it's a matter of mathematics.