Source: American Institute for Economic Research
by David C Rose
“Many argue that we need to get serious about reforming Social Security and Medicare because both trust funds will run dry. The implication is that this will be catastrophic, but this is not true. In reality, the entitlement problem may prove to be much worse. Both trust funds are filled with special issue bonds that are liabilities to the Treasury. Since the Treasury has no surplus upon which to draw, when these bonds are presented for redemption, Treasury must issue additional debt to retire them. But this is what would have happened if program benefit payouts exceeded tax collections in a system with no trust fund, so the trust fund might as well not even exist.” (08/27/24)
https://www.aier.org/article/entitlement-collapse-is-worse-than-it-looks/