This video proposes to ban Congress from “borrowing” from Social Security.
The fact is the Trust invests in special interest paying Treasury bonds (paying the trust $60+ billion a year in interest) through intragovernmental transactions.
It’s been the same way since 1939. The trust has been redeeming those bonds regularly since 2021.
This method of investing excess SS revenue (which no longer exists) has nothing to do with the approaching insolvency of the trust fund.
Take a look at the video here:
https://www.facebook.com/reel/930603462991193/?fs=e&fs=e
It says “President Donald Trump will ban Congress from ever “raiding” the trust fund again.”
People who post this kind of garbage are reprehensible, but when done in support of Trump is understandable these days.
Funded the same way since 1939
if Social Security were subject to the same rules as a Money Purchase Pension Plan for civilian workers the investments would clearly violate ERISA’s fiduciary rules. Those same investments would never pass muster as a Qualified Default Investment Alternatives. So, let’s not repeat the mistake of the past, giving Congress a ready supply of funds to spend more, and, should there be a surplus, invest it prudently.
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This has been going on for years. I vaguely remember in the Bush-Gore debates one of the points was “were they in favor of putting Social Security funds in a lock box”. I thought it a strange thing at the time but it still goes on.
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Yup, no lock box and no reason to have such a thing. Some people want to trust invested in the stock market. Imagine if the federal government dropped a couple of trillion in the market…especially this administration in control.
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