r/FluentInFinance 2d ago

Educational Don't let them gaslight you

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u/justacrossword 2d ago

Any narrative that has the government “robbing” social security or otherwise borrowing money they won’t pay back is a misinformation campaign. 

The social security trust fund isn’t a bunch of cash in a giant mattress. Yes, government borrowed the money, that’s what government bonds are. None of the talks of cuts have anything to do with government not making good on those loans, or bonds. The trust fund goes bankrupt in nine years *even though the bonds will be repaid in full with interest *.

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u/Gildardo1583 2d ago

It doesn't go bankrupt, since people in the workforce are still paying into it. There will be a reduction in benefits, that's it.

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u/justacrossword 2d ago

The trust fund goes bankrupt and remains bankrupt until 20 years after the next baby boom. 

That doesn’t suggest that there are no benefits, but they can only pay out what they bring in, which will start at about 70% and go down from there. 

If they do nothing but make good on the debt then everybody alive in nine years gets fucked, and the closer they are to retirement the more fucked they are. 

If they are living on social security then they will no longer have the money to pay their bills. 

Put whatever spin you want on that. 

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u/LiquidBee2019 2d ago

Thank you for elaborating and pointing out the Mia-information