>>>I could challenge you to prove where the SS or postal service surplus was spent<<<
The SSA just goes into the General Fund--if that is what the government calls it. An accounting entry is made for the surplus and some type of bonds are added to the SSA account. Its an electronic entry somewhere. Everything is spent if it is needed.
I think the Postal Service law requires it to operate at break-even. The Treasury subsidizes it when it runs a deficit and, I assume, swipes its surplus when it is profitable. That sounds fair.
I can only assume that the SSA surplus was used to cancel some electronic bonds or notes somewhere.
The reason I segregated the SSA surplus was that it has a specific purpose. Of course, you could argue that there are other specific-use programs too. However, months ago, both of us accepted the idea that the current Administration's deficits are actually larger than mentioned because the Administration is offsetting its on-budget deficits with the SSA surplus. I just continued that exercise.
It is true, Mr. Clinton had 2 years of surpluses. If you exclude the SSA surplus, it was about $86 billion--of little consequence to the government but a good start. Some confuse deficits and surpluses with national debt. During these two years of surplus, the national debt grew at a slower pace. However, it still grew. The reason is because of the government's loan programs which require the issuance of debt.
You are a fairly young fellow so you may not remember this. Back in the 1970s, there were congressional hearings about the stewardship of U. S. Trust funds, including SSA. The focus of the hearings was the "accounting" interest on the "accounting entry" bonds allocated to the trust funds. The going rate for bonds was about 7 percent--I seem to remember. The trust fund bonds--even the ones just added when regular bonds paid 7 percent--was 2 or 3 percent. I believe Richard Ney was a witness. I always got a kick out of him.
Then there was a witness from the agency that managed the trust fund entries. The witness was asked about the discrepancy in the interest rates. In a moment of honesty, the witness explained that, if the government allocated the current interest rate of 7 percent, the government's costs, or deficit, would be higher. The government has always borrowed from the SSA account in one way or another. |
