Tuesday, November 23, 2010

More on The Trust Fund

This was a comment that was left on Matthew Yglesias' blog that does a much better job of articulating the problematic nature of the trust fund:
"My point is the value of the trust fund is the value of future congresses to honor the current promises to pay future retirees and the value of future congresses and presidents to transfer money to social security when it is needed.Holders of public debt would probably not flinch or be concerned at all if the trust fund was never paid back. It has no implications for the u.s's ability to borrow from third parties."

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