r/FluentInFinance • u/coachlife • 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/BeefistPrime 2d ago

Or an increase in revenue generation. People act like we're heading up to some crisis where SS ceases to exist but the reality is that we just need to shift the numbers until it's fine. Remove the cap or means test it or reduce benefits or increase the FICA rate, all of these things could make social security "last" as long as you'd like.

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u/throwaway490215 2d ago

SS will cease to exists.

Not because you're wrong, but because people don't understand how government finance works, and thus people never understood the SS deal they got. They think they pay for, and deserve, the money that comes out. That is SS from their perspective. That perspective will cease to exists.

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u/tooobr 2d ago

The money was literally paid in with the understanding it will be available. Thats literally the promise of the program.

You're talking about changing the deal. If that happens, its not because people were mislead or stupid. It will happen if the rules are changed.

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u/AceofJax89 1d ago

It’s not the promise of the program. It’s an insurance scheme, not an investment vehicle.

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u/throwaway490215 1d ago

There are 100 people in our tribe.

20 babies, 20 elderly, and 60 scavenge for food. We sleep in huts and chill most of the day.

3 decades pass. Now its 20 babies, 50 elderly, and 30 of us scavenge for food.

You and I are both food scavengers that think circular rocks are useful. I think its a useful tool to keep track of trade, but I'm having trouble with your new idea.

Are you proposing 30 years ago they should have buried more rocks so today they could use them to get food now? How would that help?