DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Most Americans have the right idea on SS.

**AntonayPina** · 04-08-2006, 08:00 AM

Agathon,

Read this from the AARP . They give you the straight story.

Why Have Trust Funds?
The securities held by the trust funds are future financial claims against the government. Securities in the Social Security trust fund accounts, along with other Social Security revenues, give the Treasury the authority to write checks. Just as a positive balance in a checking account means an individual can draw on that account, a balance in the Social Security trust funds means that checks can be written on the Social Security account.

While all government programs have Treasury accounts, for Social Security, the trust fund designation means that the total amount received by Social Security beneficiaries is not subject to the annual Congressional appropriation process. As long as there is are balances in Social Security's trust fund accounts, benefits are paid with monies designated specifically for that purpose.

The Social Security trust funds represent a long-term commitment on behalf of the government to Social Security. And, as long as the program has been in operation (64 years), the government has not defaulted on these claims.
There doesn't have to be any assets in the accounts. As long as there is a balance the govt has to pay. Now that doesn't mean that they can't pay after there is no balance, but the govt of the period could legally elect to eliminate social security at that time. The republicans want us to believe that they would have to stop all payments, but they don't.

04-08-2006, 08:00 AM	#11
AntonayPina Join Date Oct 2005 Posts 522 Senior Member	Agathon, Read this from the AARP . They give you the straight story. Why Have Trust Funds? The securities held by the trust funds are future financial claims against the government. Securities in the Social Security trust fund accounts, along with other Social Security revenues, give the Treasury the authority to write checks. Just as a positive balance in a checking account means an individual can draw on that account, a balance in the Social Security trust funds means that checks can be written on the Social Security account. While all government programs have Treasury accounts, for Social Security, the trust fund designation means that the total amount received by Social Security beneficiaries is not subject to the annual Congressional appropriation process. As long as there is are balances in Social Security's trust fund accounts, benefits are paid with monies designated specifically for that purpose. The Social Security trust funds represent a long-term commitment on behalf of the government to Social Security. And, as long as the program has been in operation (64 years), the government has not defaulted on these claims. There doesn't have to be any assets in the accounts. As long as there is a balance the govt has to pay. Now that doesn't mean that they can't pay after there is no balance, but the govt of the period could legally elect to eliminate social security at that time. The republicans want us to believe that they would have to stop all payments, but they don't.
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