Logic vs the Great Social Security Raid meme.

[DFab420]

If you pay out A and have B left over. You take B and invest it in a protected C.

If A needs B, then C will give it back to A.

If A doesn't need B, then B sits in C and accrues D

D is then used to protect A, if B ever runs out.

If that doesn't happen then D is spent by the government to help cover deficit spending

B is never spent on things other then paying out A or investing in C


http://peoplespension.infoshop.org/blogs-mu/2010/09/20/has-social-security-ever-been-%E2%80%9Craided%E2%80%9D/

The whole concept is that at the end of paying out all those pensions, there is going to be some money left over, what do you do with that money to make it work for you but also protect from the ups and downs of the free market? Put it in treasury bonds. The interest goes toward padding the national budget, and if, ever, there is a run on Social Security, the money with all come back from the Treasury, because thats how non-negotiable Treasury bonds work.

The only issue I have is I would like some more transparency on what D gets spent on sometimes.