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Privatized Social Security

Aberration said:
If I have misunderstood, you have yet to be able to demonstrate it. Dude. Really.
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Social Security was created in 1935 with the goal of providing economic security to the nation’s elderly; it was expanded in the 1950s to include support for the disabled. The program is established largely on a “pay-as-you-go” basis: current employed workers contribute taxes that fund benefits to retired workers and survivors in the Old-Age and Survivors Insurance (OASI) program as well as disabled workers and their families under the Disability Insurance (DI) program.

Budget Basics: How Does Social Security Work?
 
Aberration said:
Payroll taxes are used to buy new Treasuries.
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Again, I teach a class on the subject and need to understand the point. So the government uses payroll taxes to buy new Treasuries, and then sells treasuries to pay the bills? This that about right?
 
JoeTheEconomist said:
Again, I teach a class on the subject and need to understand the point. So the government uses payroll taxes to buy new Treasuries, and then sells treasuries to pay the bills? This that about right?
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According to them that is what they do.

“Money to cover expenditures (mainly benefit payments) from the trust funds comes from the redemption or sale of securities held by the trust funds. When "special-issue" securities are redeemed, interest is paid. In fact, the principal amount of special issues redeemed, plus the corresponding interest, is just enough to cover an expenditure.”
 
vegas giants said:
Social Security was created in 1935 with the goal of providing economic security to the nation’s elderly; it was expanded in the 1950s to include support for the disabled. The program is established largely on a “pay-as-you-go” basis: current employed workers contribute taxes that fund benefits to retired workers and survivors in the Old-Age and Survivors Insurance (OASI) program as well as disabled workers and their families under the Disability Insurance (DI) program.

Budget Basics: How Does Social Security Work?
Click to expand...

“Money to cover expenditures (mainly benefit payments) from the trust funds comes from the redemption or sale of securities held by the trust funds. When "special-issue" securities are redeemed, interest is paid. In fact, the principal amount of special issues redeemed, plus the corresponding interest, is just enough to cover an expenditure.”

Trust Fund Data
 
Aberration said:
“Money to cover expenditures (mainly benefit payments) from the trust funds comes from the redemption or sale of securities held by the trust funds. When "special-issue" securities are redeemed, interest is paid. In fact, the principal amount of special issues redeemed, plus the corresponding interest, is just enough to cover an expenditure.”

Trust Fund Data
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Right. Which means it comes from current payers
 
If republicans want to see a mass exodus from their party, pass privatizing social security.
 
vegas giants said:
Right. Which means it comes from current payers
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Wrong. It means money to cover expenditures (mainly benefit payments) from the trust funds comes from the redemption or sale of securities held by the trust funds.
 
Aberration said:
Wrong. It means money to cover expenditures (mainly benefit payments) from the trust funds comes from the redemption or sale of securities held by the trust funds.
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That is put their by current payers
 
vegas giants said:
That is put their by current payers
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Wrong.

“Tax income is deposited on a daily basis and is invested in "special-issue" securities. The cash exchanged for the securities goes into the general fund of the Treasury and is indistinguishable from other cash in the general fund.”

Trust Fund Data
 
Aberration said:
Wrong.

“Tax income is deposited on a daily basis and is invested in "special-issue" securities. The cash exchanged for the securities goes into the general fund of the Treasury and is indistinguishable from other cash in the general fund.”

Trust Fund Data
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Right. And then the securities are cashed and pay current recipients. So current payees pay for current recipients
 
vegas giants said:
Right. And then the securities are cashed and pay current recipients. So current payees pay for current recipients
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Wrong. The securities were bought in the past. Which means past workers paid for current recipients. They don’t buy and sell the same securities on the same day.
 
Aberration said:
Wrong. The securities were bought in the past. Which means past workers paid for current recipients. They don’t buy and sell the same securities on the same day.
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The very very recent past.
 
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