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Politics : Formerly About Advanced Micro Devices
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To: TimF who wrote (887271)9/12/2015 8:03:07 PM
From: tejek  Read Replies (2) of 1576346
 
It is a logical impossibility for Social Security to go bankrupt. We can voluntarily choose to suspend or eliminate the program, but it could never fail because it “ran out of money.”

Nonsense. It can run out of money in two ways. The nominal value of the trust fund can hit zero. Technically it would avoid bankruptcy, because the payouts are required by law to be but to the current income from social security taxes when that happens. The problem here is that it would involve a massive year over year cut.

The other way it can run out of money is that it can cost too much to be affordable. That can happen whatever the value of the trust fund, since the fund is an accounting entry not a real store of wealth. (The federal government owes itself money which means the asset and the liability cancel out to zero.)

The article told you how both ways can be avoided. Read it again plz.
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