Yeah... where does the SS surplus go, into "the lockbox"?
First, there is no surplus. What there IS is a "cash balance" -- a true "surplus" would exist if and only if there were sufficient cash to cover all future benefit payouts. This is what I've tried to explain to you.
Secondly, the cash balance for SS must be invested SOMEWHERE; otherwise, there would be no earnings on the funds. So, they could choose to invest the money in China. But, like investors all over the world, they choose to invest in American debt.
Essentially, you've heard this discussed by people who don't understand it, and you've bought into it. THE MONEY IN THE SS FUND HAS TO BE INVESTED. Whether it is invested in US debt or that of some other country is pretty much immaterial. In fact, what privatization would do is to allow some of the fund to be invested in securities OTHER than US debt; yet, you oppose privatization.
What would you prefer to have happen? To invest the money in the market, in China, the US, or just let it sit and earn nothing? |
